How do New kVAh Billing Norms Affect Commercial and Industrial Consumers in Maharashtra?

Mumbai, April 29 (NationPress) - Consumers throughout Maharashtra, especially those within the commercial and industrial sectors with sanctioned loads exceeding 20 kW, are urged to evaluate their electrical systems and implement necessary adjustments in light of the recent introduction of kVAh billing, now operational under the Maharashtra Electricity Regulatory Commission (MERC) Tariff Order.

According to the updated billing framework, consumers will now receive bills based on apparent energy (kVAh) instead of solely on active energy (kWh). The kVAh billing method accounts for both active (real) and reactive (non-productive) energy usage. It is vital to maintain a high Power Factor (close to 1.0) to prevent escalated electricity costs.

This adjustment applies to all pertinent Low Tension (LT) consumers statewide.

Adani Electricity Mumbai Limited has encouraged its consumers to assess their electrical systems and take corrective measures following the rollout of kVAh billing.

"We have proactively pinpointed consumers who may not have made necessary changes and are contacting each individually. While many are responding positively, sectors such as banks and schools, which require internal approvals, may experience delays," stated a spokesperson for Adani Electricity Mumbai Limited.

Although the number of affected consumers is limited, timely action is essential, the spokesperson noted.

This change is relevant to all applicable LT consumers statewide.

Consumers with a low Power Factor may face a significant spike in their electricity bills, with assessments based on consumption patterns from March 2025 indicating possible increases if corrective actions are not taken.

Consumers are advised to regularly monitor and sustain their Power Factor and to install or enhance Power Factor Correction (PFC) equipment such as capacitor banks or Automatic Power Factor Correction (APFC) panels.

Moreover, they are encouraged to consult certified electrical professionals for evaluation and corrective measures.

If a consumer's sanctioned load is below 20 kW, it is advisable to consult their utility regarding the potential for transitioning to a suitable tariff category, such as LT II-A.

Not all electricity drawn from the grid is utilized for productive work. Active Power (kWh) powers devices like lighting, motors, and appliances, while Reactive Power (kVArh) maintains voltage stability for inductive loads such as motors and transformers but does not perform useful work.

Excessive reactive power results in energy loss and inefficiencies in the electricity system, now reflected under kVAh billing.

The Power Factor represents the ratio of active power to total apparent power (kVAh). A Power Factor of 1 (unity) indicates that all drawn energy is utilized effectively. A lower Power Factor leads to greater energy wastage and higher billed units under kVAh billing.

Maintaining a high Power Factor ensures reduced losses, improved energy efficiency, and lower electricity expenses.

Capacitor banks or Automatic Power Factor Correction (APFC) systems assist in offsetting local reactive power demand within a consumer's facility.

Upgrading or installing these systems enhances the Power Factor, thereby lowering overall kVAh consumption and assisting in the efficient management of electricity bills.

The transition to kVAh billing encourages responsible energy consumption by discouraging unnecessary reactive power draw, ultimately benefiting both consumers and the grid through enhanced energy efficiency, diminished network losses, improved reliability, and service quality. This shift also fosters a more sustainable and cost-effective energy environment.