What Should Consumers in Maharashtra Know About New kVAh Billing Norms?

Mumbai, April 29 (NationPress) Consumers throughout Maharashtra, especially those in the commercial and industrial sectors with a sanctioned load exceeding 20 kW, are encouraged to assess their electrical systems and implement necessary changes following the introduction of kVAh billing, which is now active as per the Maharashtra Electricity Regulatory Commission (MERC) Tariff Order.

With the new billing approach, consumers will now be charged based on apparent energy (kVAh) rather than solely on active energy (kWh). The kVAh billing method accounts for both active (real) and reactive (non-productive) energy consumption. It is essential to maintain a high Power Factor (approaching 1.0) to avoid elevated electricity costs.

This adjustment is relevant for all applicable Low Tension (LT) consumers statewide.

Adani Electricity Mumbai Limited has prompted its customers to evaluate their electrical systems and undertake corrective measures in light of the new kVAh billing.

"We have proactively identified customers who might not have made necessary adjustments and are reaching out to them individually. While many have responded positively, sectors such as banks and schools, which need internal approvals, may require more time," stated a spokesperson from Adani Electricity Mumbai Limited.

Although the number of affected consumers is limited, prompt action is vital for consumers, he noted.

This modification is applicable to all relevant LT consumers statewide.

Consumers with a low Power Factor may face a considerable increase in their electricity bills, with evaluations based on March 2025 consumption patterns suggesting potential hikes in their bills if corrective actions are not taken.

They have been advised to consistently monitor and sustain their Power Factor and to install or enhance Power Factor Correction (PFC) equipment, such as capacitor banks or APFC panels.

Furthermore, they are encouraged to consult certified electrical professionals for evaluation and corrective actions.

If a consumer's sanctioned load requirement is under 20 kW, it is advisable to consult their utility to explore the possibility of migrating to a suitable tariff category, like LT II-A.

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

Excess reactive power results in energy waste and inefficiencies in the electricity network, now represented under kVAh billing.

The Power Factor is the ratio of active power to total apparent power (kVAh). A Power Factor of 1 (unity) indicates that all energy drawn is used efficiently. A lower Power Factor means more wasted energy and increased charges under kVAh billing.

Upholding a strong Power Factor guarantees reduced losses, enhanced energy efficiency, and lower electricity expenses.

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

Implementing or upgrading these systems enhances the Power Factor, lowering overall kVAh consumption and aiding in efficient electricity bill management.

The shift to kVAh billing encourages responsible energy consumption by deterring unnecessary reactive power draw, ultimately benefiting both consumers and the grid through improved energy efficiency, decreased network losses, enhanced reliability, and better service quality. This leads to a more sustainable and cost-effective energy ecosystem.