Poornima College of Engineering Dr.

Gaurav Jain, EE Dept

Chapter 4
Electrical-Load Management
Electrical Basics:-
Introduction to Electric Power Supply Systems
Electric power supply system in a country comprises of generating units that produce
electricity; high voltage transmission lines that transport electricity over long distances;
distribution lines that deliver the electricity to consumers; substations that connect the pieces
to each other; and energy control centres to coordinate the operation of the components. The
Figure 1 shows a simple electric supply system with transmission and distribution network
and linkages from electricity sources to end-user.

Figure 1 Typical Electric Power Supply Systems

Power Generation Plant

The fossil fuels such as coal, oil and natural gas, nuclear energy, and falling water (hydel) are
commonly used energy sources in the power generating plant. A wide and growing variety of
unconventional generation technologies and fuels have also been developed, including
cogeneration solar energy, wind generators, and waste materials.
About 70 % of power generating capacity in India is from coal based thermal power plants.
The principle of coal-fired power generation plant is shown in Figure 2. Energy stored in the
coal is converted in to electricity in thermal power plant. Coal is pulverized to the consistency
of talcum powder. Then powdered coal is blown into the water wall boiler where it is burned
at temperature higher than 1300°C. The heat in the combustion gas is transferred into steam.
This high-pressure steam is used to run the steam turbine to spin. Finally turbine rotates the
generator to produce electricity.
In India, for the coal based power plants, the overall efficiency ranges from 28% to 35%
depending upon the size, operational practices and capacity utilization. Where fuels are the
source of generation, a common term used is the ―HEAT RATE‖ which reflects the
Poornima College of Engineering Dr. Gaurav Jain, EE Dept

efficiency of generation. ―HEAT RATE‖ is the heat input in kilo Calories or kilo Joules, for
generating ‗one‘ kilo Watt-hour of electrical output. One kilo Watt hour of electrical energy
being equivalent to 860 kilo Calories of thermal energy or 3600 kilo Joules of thermal
energy. The ―HEAT RATE‖ expresses in inverse the efficiency of power generation.

Figure 2 Principle of Thermal Power Generation

Transmission and Distribution Lines

The power plants typically produce 50 cycle/second (Hertz), alternating-current (AC)
electricity with voltages between 11kV and 33kV. At the power plant site, the 3-phase
voltage is stepped up to a higher voltage for transmission on cables strung on cross-country
towers.
High voltage (HV) and extra high voltage (EHV) transmission is the next stage from power
plant to transport A.C. power over long distances at voltages like; 220 kV & 400 kV. Where
transmission is over 1000 kM, high voltage direct current transmission is also favoured to
minimize the losses.
Sub-transmission network at 132 kV, 110 kV, 66 kV or 33 kV constitutes the next link
towards the end user. Distribution at 11 kV / 6.6 kV / 3.3 kV constitutes the last link to the
consumer, who is connected directly or through transformers depending upon the drawl level
of service. The transmission and distribution network include sub-stations, lines and
distribution transformers. High voltage transmission is used so that smaller, more economical
wire sizes can be employed to carry the lower current and to reduce losses. Sub-stations,
containing step-down transformers, reduce the voltage for distribution to industrial users. The
voltage is further reduced for commercial facilities.
Electricity must be generated, as and when it is needed since electricity cannot be stored
virtually in the system. There is no difference between a transmission line and a distribution
line except for the voltage level and power handling capability. Transmission lines are
usually capable of transmitting large quantities of electric energy over great distances. They
operate at high voltages. Distribution lines carry limited quantities of power over shorter
distances. Voltage drops in line are in relation to the resistance and reactance of line, length
and the current drawn. For the same quantity of power handled, lower the voltage, higher the
current drawn and higher the voltage drop. The current drawn is inversely proportional to the
voltage level for the same quantity of power handled. The power loss in line is proportional
to resistance and square of current. (i.e. PLOSS=I2R).
Poornima College of Engineering Dr. Gaurav Jain, EE Dept

Higher voltage transmission and distribution thus would help to minimize line voltage drop in
The ratio of voltages and the line power loss in the ratio of square of voltages. For instance, if
Distribution of power is raised from 11 kV to 33 kV, the voltage drop would be lower by a
factor1/3 and the line loss would be lower by a factor (1/3)2 i.e., 1/9. Lower voltage
transmission and distribution also calls for bigger size conductor on account of current
handling capacity needed.

Industrial End User

At the industrial end user premises, again the plant network elements like transformers at
receiving sub-station, switchgear, lines and cables, load-break switches, capacitors cause
losses, which affect the input-received energy. However the losses in such systems are
meager and unavoidable.
A typical plant single line diagram of electrical distribution system is shown in Figure 3.
After power generation at the plant it is transmitted and distributed over a wide network. The
standard technical losses are around 17 % in India (Efficiency = 83%). But the figures for
many of the states show T & D losses ranging from 17 – 50 %. All these may not constitute
technical losses, since un-metered and pilferage are also accounted in this loss. When the
power reaches the industry, it meets the transformer. The energy efficiency of the transformer
is generally very high. Next, it goes to the motor through internal plant distribution network.
A typical distribution network efficiency including transformer is 95% and motor efficiency
is about 90%. Another 30 % (Efficiency =70%)is lost in the mechanical system which
includes coupling/ drive train, a driven equipment such as pump and flow control
valves/throttling etc. Thus the overall energy efficiency becomes 50%. (0.83 x 0.95x 0.9 x
0.70 = 0.50, i.e. 50% efficiency)
Hence one unit saved in the end user is equivalent to two units generated in the power plant.
(1Unit / 0.5Eff = 2 Units)
Poornima College of Engineering Dr. Gaurav Jain, EE Dept

Electricity Billing
The electricity billing by utilities for medium & large enterprises, in High Tension (HT)
category, is often done on two-part tariff structure, i.e. one part for capacity (or demand)
drawn and the second part for actual energy drawn during the billing cycle. Capacity or
demand is in kVA (apparent power) or kW terms. The reactive energy (i.e.) kVArh drawn by
the service is also recorded and billed for in some utilities, because this would affect the load
on the utility. Accordingly, utility charges for maximum demand, active energy and reactive
power drawn (as reflected by the power factor) in its billing structure. In addition, other fixed
and variable expenses are also levied.
The tariff structure generally includes the following components:
a) Maximum demand Charges
These charges relate to maximum demand registered during month/billing period and
corresponding rate of utility.
b) Energy Charges
These charges relate to energy (kilowatt hours) consumed during month / billing period and
corresponding rates, often levied in slabs of use rates. Some utilities now charge on the basis
of apparent energy (kVAh), which is a vector sum of kWh and kVArh.
c) Power factor penalty or bonus rates, as levied by most utilities, are to contain reactive
power drawn from grid.
d) Fuel cost adjustment charges as levied by some utilities are to adjust the increasing fuel
expenses over a base reference value.
e) Electricity duty charges
f) Meter rentals
g) Lighting and Fan power consumption is often at higher rates, levied sometimes on slab
basis or on actual metering basis.
h) Time Of Day (TOD) rates like peak and non-peak hours are also prevalent in tariff
structure provisions of some utilities.
i) Penalty for exceeding contract demand
j) Surcharge if metering is at LT side in some of the utilities
Analysis of utility bill data and monitoring its trends helps energy manager to identify ways
for electricity bill reduction through available provisions in tariff framework, apart from
energy budgeting.
The utility employs an electromagnetic or electronic tri vector meter, for billing purposes.
The minimum outputs from the electromagnetic meters are
1) Maximum demand registered during the month, which is measured in pre-set time
intervals (say of 30 minute duration) and this is reset at the end of every billing cycle.
2) Active energy in kWh during billing cycle
3) Reactive energy in kVArh during billing cycle and
4) Apparent energy in kVAh during billing cycle
Poornima College of Engineering Dr. Gaurav Jain, EE Dept

Electrical Load Management & Maximum Demand Control:-

Need for Electrical Load Management
In a macro perspective, the growth in the electricity use and diversity of end use segments in
time of use has led to shortfalls in capacity to meet demand. As capacity addition is costly
and only a long time prospect, better load management at user end helps to minimize peak
demands on the utility infrastructure as well as better utilization of power plant capacities.
The utilities (State Electricity Boards) use power tariff structure to influence end user in
better load management through measures like time of use tariffs, penalties on exceeding
allowed maximum demand, night tariff concessions etc. Load management is a powerful
means of efficiency improvement both for end user as well as utility.
As the demand charges constitute a considerable portion of the electricity bill, from user
angle too there is a need for integrated load management to effectively control the maximum
demand.
Step By Step Approach for Maximum Demand Control
1. Load Curve Generation
Presenting the load demand of a consumer against time of the day is known as a ‗load curve‘.
If it is plotted for the 24 hours of a single day, it is known as an ‗hourly load curve‘ and if
daily demands plotted over a month, it is called daily load curves. A typical hourly load curve
for an engineering industry is shown in Figure 5. These types of curves are useful in
predicting patterns of drawl, peaks and valleys and energy use trend in a section or in an
industry or in a distribution network as the case may be.

2. Rescheduling of Loads
Rescheduling of large electric loads and equipment operations, in different shifts can be
planned and implemented to minimize the simultaneous maximum demand. For this purpose,
it is advisable to prepare an operation flow chart and a process chart. Analysing these charts
and with an integrated approach, it would be possible to reschedule the operations and
running equipment in such a way as to improve the load factor which in turn reduces the
maximum demand.
Poornima College of Engineering Dr. Gaurav Jain, EE Dept

3. Storage of Products/in process material/ process utilities like

refrigeration
It is possible to reduce the maximum demand by building up storage capacity of products/
materials, water, chilled water / hot water, using electricity during off peak periods. Off peak
hour operations also help to save energy due to favourable conditions such as lower ambient
temperature etc. Example: Ice bank system is used in milk & dairy industry. Ice is made in
lean period and used in peak load period and thus maximum demand is reduced.
4. Shedding of Non-Essential Loads
When the maximum demand tends to reach pre-set limit, shedding some of non-essential
loads temporarily can help to reduce it. It is possible to install direct demand monitoring
systems, which will switch off non-essential loads when a pre-set demand is reached. Simple
systems give an alarm, and the loads are shed manually. Sophisticated microprocessor
controlled systems are also available, which provide a wide variety of control options like:
 Accurate prediction of demand
 Graphical display of present load, available load, demand limit
 Visual and audible alarm
 Automatic load shedding in a predetermined sequence
 Automatic restoration of load
 Recording and metering
5. Operation of Captive Generation and Diesel Generation Sets
When diesel generation sets are used to supplement the power supplied by the electric
utilities, it is advisable to connect the D.G. sets for durations when demand reaches the peak
value. This would reduce the load demand to a considerable extent and minimize the demand
charges.
6. Reactive Power Compensation
The maximum demand can also be reduced at the plant level by using capacitor banks and
maintaining the optimum power factor. Capacitor banks are available with microprocessor
based control systems. These systems switch on and off the capacitor banks to maintain the
desired Power factor of system and optimize maximum demand thereby.
Variable- Frequency Drives:-
The VFD operates on a simple principle. The rotational speed of an AC induction motor
depends on the number of poles in that stator and the frequency of the applied AC power.
Although the number of poles in an induction motor cannot be altered easily, variable speed
can be achieved through a variation in frequency. The VFD rectifies standard 50 cycle AC
line power to DC, and then synthesizes the DC to a variable frequency AC output.
Motors connected to VFD provide variable speed mechanical output with high efficiency.
These devices are capable of up to a 9:1 speed reduction ratio (11 percent of full speed), and
a 3:1 speed increase (300 percent of full speed).
In recent years, the technology of AC variable frequency drives (VFD) has evolved into
highly sophisticated digital microprocessor control, along with high switching frequency
IGBTs (Insulated Gate Bi Polar Transistors) power devices. This has led to significantly
Poornima College of Engineering Dr. Gaurav Jain, EE Dept

advanced capabilities from the ease of programmability to expanded diagnostics. The two
most significant benefits from the evolution in technology have been that of cost and
reliability, in addition to the significant reduction in physical size. A variable-frequency drive
(VFD) is a system for controlling the rotational speed of an alternating current (AC) electric
motor by controlling the frequency of the electrical power supplied to the motor.
Variable-frequency drives are also known as adjustable-frequency drives (AFD), variable-
speed drives (VSD), AC drives, micro-drives or inverter drives. Since the voltage is varied
along with frequency, these are sometimes also called VVVF (variable voltage variable
frequency) drives. All VFDs use their output devices (IGBTs, transistors, thyristors) only as
switches, turning them only ON or OFF. Drives can be classified as: Constant voltage,
Constant current or Cyclo-converter In a constant voltage converter, the intermediate DC link
voltage remains approximately constant during each output cycle. In constant current drives,
a large inductor is placed between the input rectifier and the output bridge, so the current
delivered is nearly constant. A cyclo-converter has no input rectifier or DC link and instead
connects each output terminal to the appropriate input phase. The most common type of
packaged VF drive is the constant-voltage type, using pulse width modulation to control both
the frequency and effective voltage applied to the motor load. A variable frequency drive
system generally consists of an AC motor (mostly 3 phase induction motor), a controller
(solid state electronic power conversion devices like diodes, thyristors, IGBTs, etc.) and an
operator interface as shown in picture.

An embedded microprocessor governs the overall operation of the VFD controller. The
operator interface, also commonly known as a Human Machine Interface (HMI), provides a
means for an operator to start and stop the motor.
VFD Operation
Poornima College of Engineering Dr. Gaurav Jain, EE Dept

When an induction motor is connected to a full voltage supply, it draws several times (up to
about 6 times) its rated current. As the load accelerates, the available torque usually drops a
little and then rises to a peak while the current remains very high until the motor approaches
full speed.
By contrast, when a VFD starts a motor, it initially applies a low frequency and voltage to the
motor. The starting frequency is typically 2 Hz or less. Thus starting at such a low frequency
avoids the high inrush current that occurs when a motor is started by simply applying the
utility (mains) voltage by turning on a switch. After the start of the VFD, the applied
frequency and voltage are increased at a controlled rate or ramped up to accelerate the load
without drawing excessive current. This starting method typically allows a motor to develop
150% of its rated torque while the VFD is drawing less than 50% of its rated current from the
mains in the low speed range. A VFD can be adjusted to produce a steady 150% starting
torque from standstill right up to full speed. Note, however, that cooling of the motor is
usually not good in the low speed range. Thus running at low speeds even with rated torque
for long periods is not possible due to overheating of the motor. If continuous operation with
high torque is required in low speeds an external fan is needed. Please consult the
manufacturer of the motor and/or the VFD.
Harmonics and its Effects:-
In any alternating current network, flow of current depends upon the voltage applied and the
impedance (resistance to AC) provided by elements like resistances, reactance‘s of inductive
and capacitive nature. As the value of impedance in above devices is constant, they are called
linear whereby the voltage and current relation is of linear nature.
However in real life situation, various devices like diodes, silicon controlled rectifiers, PWM
systems, thyristors, voltage & current chopping saturated core reactors, induction & arc
furnaces are also deployed for various requirements and due to their varying impedance
characteristic, these Non-linear devices cause distortion in voltage and current waveforms
which is of increasing concern in recent times. Harmonics occurs as spikes at intervals which
are multiples of the mains (supply) frequency and these distort the pure sine wave form of the
supply voltage & current. Harmonics are multiples of the fundamental frequency of an
electrical power system. If, for example, the fundamental frequency is 50 Hz, then the 5th
harmonic is five times that frequency, or 250 Hz. Likewise, the 7th harmonic is seven times
the fundamental or 350 Hz, and so on or higher order harmonics. Harmonics can be discussed
in terms of current or voltage. A 5th harmonic current is simply a current flowing at 250 Hz
on a 50 Hz system. The 5th harmonic current flowing through the system impedance creates a
5th harmonic voltage. Total Harmonic Distortion (THD) expresses the amount of harmonics.
The following is the formula for calculating the THD for current:
Poornima College of Engineering Dr. Gaurav Jain, EE Dept

When harmonic currents flow in a power system, they are known as ―poor power quality‖ or
―dirty power‖. Other causes of poor power quality include transients such as voltage spikes,
surges, sags, and ringing. Because they repeat every cycle, harmonics are regarded as a
steady state cause of poor power quality.
When expressed as a percentage of fundamental voltage THD is given by,

where V1 is the fundamental frequency voltage and Vn is nth harmonic voltage component.
Major Causes of Harmonics
Devices that draw non-sinusoidal currents when a sinusoidal voltage is applied create
harmonics. Frequently these are devices that convert AC to DC. Some of these devices are
listed below:
Electronic Switching Power Converters
• Computers, Uninterruptible power supplies (UPS), Solid-state rectifiers
• Electronic process control equipment, PLC‘s, etc
• Electronic lighting ballasts, including light dimmer
• Reduced voltage motor controllers
Arcing Devices
• Discharge lighting, e.g. Fluorescent, Sodium and Mercury vapour
• Arc furnaces, Welding equipment, Electrical traction system
Ferromagnetic Devices
• Transformers operating near saturation level
• Magnetic ballasts (Saturated Iron core)
• Induction heating equipment, Chokes, Motors
Appliances
• TV sets, air conditioners, washing machines, microwave ovens
• Fax machines, photocopiers, printers
These devices use power electronics like SCRs, diodes, and thyristors, which are a growing
percentage of the load in industrial power systems. The majority use a 6-pulse converter.
Most loads which produce harmonics, do so as a steady-state phenomenon. A snapshot
reading of an operating load that is suspected to be non-linear can determine if it is producing
harmonics. Normally each load would manifest a specific harmonic spectrum. Many
problems can arise from harmonic currents in a power system. Some problems are easy to
detect; others exist and persist because harmonics are not suspected. Higher RMS current and
voltage in the system are caused by harmonic currents, which can result in any of the
problems listed below:
1) Blinking of Incandescent Lights - Transformer Saturation
2) Capacitor Failure - Harmonic Resonance
3) Circuit Breakers Tripping - Inductive Heating and Overload
4) Conductor Failure - Inductive Heating
5) Electronic Equipment Shutting down - Voltage Distortion
6) Flickering of Fluorescent Lights - Transformer Saturation
Poornima College of Engineering Dr. Gaurav Jain, EE Dept

7) Fuses Blowing for No Apparent Reason - Inductive Heating and Overload

8) Motor Failures (overheating) - Voltage Drop
9) Neutral Conductor and Terminal Failures - Additive Triplen Currents
10) Electromagnetic Load Failures - Inductive Heating
11) Overheating of Metal Enclosures - Inductive Heating
12) Power Interference on Voice Communication - Harmonic Noise
13) Transformer Failures - Inductive Heating
Overcoming Harmonics
Tuned Harmonic filters consisting of a capacitor bank and reactor in series are designed and
adopted for suppressing harmonics, by providing low impedance path for harmonic
component. The Harmonic filters connected suitably near the equipment generating
harmonics help to reduce THD to acceptable limits. In present Indian context where no
Electro Magnetic Compatibility regulations exist as a application of Harmonic filters is very
relevant for industries having diesel power generation sets and co-generation units.
Electricity Tariff:-
“The rate at which electrical energy is supplied to a consumer is known as tariff.”
Although tariff should include the total cost of producing and supplying electrical energy plus
the profit, yet it cannot be the same for all types of consumers. It is because the cost of
producing electrical energy depends to a considerable extent upon the magnitude of electrical
energy consumed by the user and his load conditions. Therefore, in all fairness, due
consideration has to be given to different types of consumers (e.g., industrial, domestic and
commercial) while fixing the tariff. This makes the problem of suitable rate making highly
complicated.
Objectives of tariff
Like other commodities, electrical energy is also sold at such a rate so that it not only returns
the cost but also earns reasonable profit. Therefore, a tariff should include the following items
1) Recovery of cost of producing electrical energy at the power station.
2) Recovery of cost on the capital investment in transmission and distribution
systems.
3) Recovery of cost of operation and maintenance of supply of electrical energy
e.g., metering equipment, billing etc.
4) A suitable profit on the capital investment.
Desirable Characteristics of a Tariff
A tariff must have the following desirable characteristics:
1) Proper return: The tariff should be such that it ensures the proper return from each
consumer. In other words, the total receipts from the consumers must be equal to the cost
of producing and supplying electrical energy plus reasonable profit. This will enable the
electric supply company to ensure continuous and reliable service to the consumers.
2) Fairness: The tariff must be fair so that different types of consumers are satisfied with
the rate of charge of electrical energy. Thus a big consumer should be charged at a lower
rate than a small consumer. It is because increased energy consumption spreads the fixed
charges over a greater number of units, thus reducing the overall cost of producing
electrical energy. Similarly, a consumer whose load conditions do not deviate much from
Poornima College of Engineering Dr. Gaurav Jain, EE Dept

the ideal (i.e., non- variable) should be charged at a lower* rate than the one whose load
conditions change appreciably from the ideal.
3) Simplicity: The tariff should be simple so that an ordinary consumer can easily
understand it. A complicated tariff may cause an opposition from the public which is
generally distrustful of supply companies.
4) Reasonable profit: The profit element in the tariff should be reasonable. An electric
supply company is a public utility company and generally enjoys the benefits of
monopoly. Therefore, the investment is relatively safe due to non-competition in the
market. This calls for the profit to be restricted to 8% or so per annum.
5) Attractive: The tariff should be attractive so that a large number of consumers are
encouraged to use electrical energy. Efforts should be made to fix the tariff in such a way
so that consumers can pay easily.
Types of Tariff
There are several types of tariff. However, the following are the commonly used types of
tariff :
1. Simple tariff. When there is a fixed rate per unit of energy consumed, it is called a simple
tariff or uniform rate tariff.
In this type of tariff, the price charged per unit is constant i.e., it does not vary with
increase or decrease in number of units consumed. The consumption of electrical energy at
the consumer's terminals is recorded by means of an energy meter. This is the simplest of all
tariffs and is readily understood by the consumers. The cost of producing electrical energy is
not same for all consumers but increases with the increasing departure of consumer's load
conditions from the ideal (i.e., constant load).
Disadvantages
1) There is no discrimination between different types of consumers since every consumer
has to pay equitably for the fixed1 charges.
2) The cost per unit delivered is high.
3) It does not encourage the use of electricity.

2. Flat rate tariff. When different types of consumers are charged at different uniform per
unit rates, it is called a flat rate tariff.
In this type of tariff, the consumers are grouped into different classes and each class of
consumers is charged at a different uniform rate. For instance, the flat rate per kWh for
lighting load may be 60 paise, whereas it may be slightly lessf (say 55 paise per kWh) for
power load. The different classes of consumers are made taking into account their diversity
and load factors. The advantage of such a tariff is that it is more fair to different types of
consumers and is quite simple in calculations.
Disadvantages
1) Since the flat rate tariff varies according to the way the supply is used, separate meters
are required for lighting load, power load etc. This makes the application of such a tariff
expensive and complicated.
2) A particular class of consumers is charged at the same rate irrespective of the magnitude
of energy consumed. However, a big consumer should be charged at a lower rate as in
his case the fixed charges per unit are reduced.
Poornima College of Engineering Dr. Gaurav Jain, EE Dept

3. Block rate tariff. When a given block of energy is charged at a specified rate and the
succeeding blocks of energy are charged at progressively reduced rates, it is called a block
rate tariff.
In block rate tariff, the energy consumption is divided into blocks and the price per unit is
fixed in each block. The price per unit in the first block is the highest2 and it is progressively
reduced for the succeeding blocks of energy. For example, the first 30 units may be charged
at the rate of 60 paise per unit; the next 25 units at the rate of 55 paise per unit and the
remaining additional units may be charged at the rate of 30 paise per unit.
The advantage of such a tariff is that the consumer gets an incentive to consume more
electrical energy. This increases the load factor of the system and hence the cost of
generation is reduced. However, its principal defect is that it lacks a measure of the
consumer's demand. This type of tariff is being used for majority of residential and small
commercial consumers.
4. Two-part tariff. When the rate of electrical energy is charged on the basis of maximum
demand of the consumer and the units consumed, it is called a two-part tariff.
In two-part tariff, the total charge to be made from the consumer is split into two components
viz., fixed charges and running charges. The fixed charges depend upon the maximum
demand of the consumer while the running charges depend upon the number of units
consumed by the consumer. Thus, the consumer is charged at a certain amount per kW of
maximum off demand plus a certain amount per kWh of energy consumed i.e.,
Total charges = Rs (b x kW + c x kWh) where,
b = charge per kW of maximum demand
c = charge per kWh of energy consumed
This type of tariff is mostly applicable to industrial consumers who have appreciable
maximum demand.
Advantages
(i) It is easily understood by the consumers.
(ii) It recovers the fixed charges which depend upon the maximum demand of the
consumer but are independent of the units consumed.
Disadvantages
(i) The consumer has to pay the fixed charges irrespective of the fact whether he has
consumed or not consumed the electrical energy.
(ii) There is always error in assessing the maximum demand of the consumer.
5. Maximum demand tariff. It is similar to two-part tariff with the only difference that the
maximum demand is actually measured by installing maximum demand meter in the
premises of the consumer. This removes the objection of two-part tariff where the maximum
demand is assessed merely on the basis of the rateable value. This type of tariff is mostly
applied to big consumers. However, it is not suitable for a small consumer (e.g., residential
consumer) as a separate maximum demand meter is required.
6. Power factor tariff. The tariff in which power factor of the consumer's load is taken into
consideration is known as power factor tariff.
In an a.c. system, power factor plays an important role. A low3 power factor increases the
rating of station equipment and line losses. Therefore, a consumer having low power factor
must be penalized. The following are the important types of power factor tariff :
Poornima College of Engineering Dr. Gaurav Jain, EE Dept

1) kVA maximum demand tariff: It is a modified form of two-part tariff. In this case, the
fixed charges are made on the basis of maximum demand in kVA and not in kW. As
kVA is inversely proportional to power factor, therefore, a consumer having low power
factor has to contribute more towards the fixed charges. This type of tariff has the
advantage that it encourages the consumers to operate their appliances and machinery at
improved power factor.
2) Sliding scale tariff: This is also known as average power factor tariff. In this case, an
average power factor, say 0-8 lagging, is taken as the reference. If the power factor of the
consumer falls below this factor, suitable additional charges are made. On the other
hand, if the power factor is above the reference, a discount is allowed to the consumer.
3) kW and kVAR tariff : In this type, both active power (kW) and reactive power (kVAR)
supplied are charged separately. A consumer having low power factor will draw more
reactive power and hence shall have to pay more charges.
7. Three-part tariff. When the total charge to be made from the consumer is split into three
parts viz., fixed charge, semi-fixed charge and running charge, it is known as a three-part
tariff. i.e.,
Total charge = Rs (a + b x kW + c x kWh)
Where
a = fixed charge made during each billing period. It includes interest and
depreciation on the cost of secondary distribution and labour cost of collecting revenues,
b = charge per kW of maximum demand, c = charge per kWh of energy consumed.

It may be seen that by adding fixed charge or consumer's charge (i.e., a) to two-part tariff, it
becomes three-part tariff. The principal objection of this type of tariff is that the charges are
split into three components. This type of tariff is generally applied to big consumers.
Prediction of Load
While considering the methods of load prediction, some of the terms used in connection with
power supply must be appreciated.
Connected Load - is the nameplate rating (in kW or kVA) of the apparatus installed on a
consumer's premises.
Demand Factor - is the ratio of maximum demand to the connected load. Load Factor - The
ratio of average load to maximum load.
Load Factor = Average Load/ Maximum Load
The load factor can also be defined as the ratio of the energy consumed during a given period
to the energy, which would have been used if the maximum load had been maintained
through- out that period. For example, load factor for a day (24 hours) will be given by:
Load Factor = Energy consumed during 24 hours / Maximum load recorded x 24 Hr

Time of Day (TOD) Tariff

Many electrical utilities like to have flat demand curve to achieve high plant efficiency. They
encourage user to draw more power during off-peak hours (say during night time) and less
power during peak hours. As per their plan, they offer TOD Tariff, which may be incentives
or disincentives. Energy meter will record peak and non- peak consumption separately by
timer control. TOD tariff gives opportunity for the user to reduce their billing, as off peak
hour tariff charged are quite low in comparison to peak hour tariff.
Poornima College of Engineering Dr. Gaurav Jain, EE Dept

Power Factor:-
In power systems, wasted energy capacity, also known as poor power factor, is often ignored.
It can result in poor reliability, safety problems and higher energy costs. The lower your
power factor, the less economically your system operates.
Power factor is the ratio between the real power and the apparent power drawn by an
electrical load. Like all ratio measurements it is a unit-less quantity and can be represented
mathematically as:

Where,
PF is power factor,
KW is the real power that actually does the work,
KVA is the apparent power and KVAR (not included in the equation) is the reactive power

In an inductive load, such as a motor, active power performs - the work and reactive power
creates the electromagnetic field. The three types of power relate to each other in a
trigonometric form as seen in Figure below.
Poornima College of Engineering Dr. Gaurav Jain, EE Dept

For the purely resistive circuit, the power factor is 1 (perfect), because the reactive power
equals zero. Here, the power triangle would look like a horizontal line, because the opposite
(reactive power) side would have zero length. For the purely inductive circuit, the power
factor is zero, because true power equals zero. Here, the power triangle would look like a
vertical line, because the adjacent (true power) side would have zero length.
The same could be said for a purely capacitive circuit. If there are no dissipative (resistive)
components in the circuit, then the true power must be equal to zero, making any power in
the circuit purely reactive. The power triangle for a purely capacitive circuit would again be a
vertical line (pointing down instead of up as it was for the purely inductive circuit).
Power factor can be an important aspect to consider in an AC circuit; because any power
factor less than 1 means that the circuit's wiring has to carry more current than what would be
necessary with zero reactance in the circuit to deliver the same amount of (true) power to the
resistive load. The poor power factor makes for an inefficient power delivery system.
Poor power factor can be corrected, paradoxically, by adding another load to the circuit
drawing an equal and opposite amount of reactive power, to cancel out the effects of the
load's inductive reactance. Inductive reactance can only be cancelled by capacitive reactance,
so we have to add a capacitor in parallel to our example circuit as the additional load.
The effect of these two opposing reactance‘s in parallel is to bring the circuit's total
impedance equal to its total resistance (to make the impedance phase angle equal, or at least
closer, to zero).
Power factor measures how efficiently the current is being converted into real work— with a
low power factor, more electrical current is required to provide the same amount of real
power. All current causes dissipation in a distribution system.
These losses can be modelled as:
[Loss = I2 * R]
Where, R is the resistance.
A power factor of 1 will result in the most efficient loading of the supply; a load with a power
factor of 0.5 will result in higher losses in the distribution system

Transmission and Distribution Losses:-

Power generated in power stations pass through large and complex networks like
transformers, overhead lines, cables and other equipment and reaches at the end users. It is
fact that the unit of electric energy generated by Power Station does not match with the units
distributed to the consumers. Some percentage of the units is lost in the distribution network.
This difference in the generated and distributed units is known as Transmission and
Distribution loss. Transmission and Distribution loss are the amounts that are not paid for by
users.
T&D Losses = (Energy Input to feeder(Kwh) – Billed Energy to Consumer(Kwh)) /
Energy Input kwh x 100
Poornima College of Engineering Dr. Gaurav Jain, EE Dept

There are two types of Transmission and Distribution Losses:

1. Technical Losses
2. Non-Technical Losses (Commercial Losses)
Technical Losses
The technical losses are due to energy dissipated in the conductors, equipment used for
transmission line, transformer, sub- transmission line and distribution line and magnetic
losses in transformers. Technical losses are normally 22.5%, and directly depend on the
network characteristics and the mode of operation. The major amount of losses in a power
system is in primary and secondary distribution lines.
While transmission and sub-transmission lines account for only about 30% of the total losses.
Therefore, the primary and secondary distribution systems must be properly planned to
ensure within limits. The unexpected load increase was reflected in the increase of technical
losses above the normal level Losses are inherent to the distribution of electricity and cannot
be eliminated.
There are two types of technical losses.
a). Permanent / Fixed Technical Losses
Fixed losses do not vary according to current. These losses take the form of heat and noise
and occur as long as a transformer is energized. Between 1/4 and 1/3 of technical losses on
distribution networks are fixed losses. Fixed losses on a network can be influenced in the
ways set out below:
• Corona Losses
• Leakage Current Losses
• Dielectric Losses
• Open-circuit Losses
• Losses caused by continuous load of measuring elements
• Losses caused by continuous load of control elements
b). Variable Technical losses
Variable losses vary with the amount of electricity distributed and are, more precisely,
proportional to the square of the current. Consequently, a 1% increase in current leads to an
increase in losses of more than 1%. Between 2/3 and 3/4 of technical (or physical) losses on
distribution networks are variable losses. By increasing the cross sectional area of lines and
cables for a given load, losses will fall. This leads to a direct trade-off between cost of losses
and cost of capital expenditure. It has been suggested that optimal average utilization rate on
a distribution network that considers the cost of losses in its design could be as low as 30 per
cent.
• Joule losses in lines in each voltage level
• Impedance losses
• Losses caused by contact resistance.
Poornima College of Engineering Dr. Gaurav Jain, EE Dept

Main Reasons for Technical Losses

Lengthy Distribution lines
1) In practical, 11 KV and 415 volt lines in rural areas are extended over long distances
to feed loads scattered over large areas. Thus, the primary and secondary distributions
lines in rural areas are largely radial laid usually extend over long distances. This
results in high line resistance and therefore, high I2R losses in the line.
2) Haphazard growths of sub-transmission and distribution system into new areas
3) Large scale rural electrification through long 11kV and LT lines.
Inadequate Size of Conductors of Distribution lines
The size of the conductors should be selected on the basis of KVA x KM capacity of standard
conductor for a required voltage regulation but rural loads are usually scattered and generally
fed by radial feeders. The conductor size of these feeders should be adequate.
Installation of Distribution Transformers away from Load Centres
Distribution transformers are not located at load centre on the secondary distribution system.
In most of case, distribution transformers are not located centrally with respect to consumers.
Consequently, the farthest consumers obtain an extremity low voltage even though a good
voltage levels maintained at the transformers secondary. This again leads to higher line
losses. The reason for the line losses increasing as a result of decreased voltage at the
consumers end. Therefore, in order to reduce the voltage drop in the line to the farthest
consumers, the distribution transformer should be located at the load centre to keep voltage
drop within permissible limits.
Low Power Factor of Primary and Secondary Distribution System
In most LT distribution circuits normally the power factor ranges from 0.65 to 0.75. A low
power factor contributes towards high distribution losses. For a given load, if the power
factor is low, the current drawn in high and losses proportional to square of the current will
be more. Thus, line losses owing to the poor PF can be reduced by improving the power
factor. This can be done by application of shunt capacitors. Shunt capacitors can be
connected either in secondary side (11 KV side) of the 33/11 KV power transformers or at
various point of distribution line. The optimum rating of capacitor banks for a distribution
system is 2/3rd of the average KVAR requirement of that distribution system. The vantage
point is at 2/3rd the length of the main distributor from the transformer. A more appropriate
manner of improving this PF of the distribution system and thereby, reduce the line losses is
to connect capacitors across the terminals of the consumers having inductive loads. By
connecting the capacitors across individual loads, the line loss is reduced from 4 to 9%
depending upon the extent of PF improvement.
Bad Workmanship
Bad Workmanship contributes significant role towards increasing distribution losses. Joints
are a source of power loss. Therefore, the number of joints should be kept to a minimum.
Proper joining techniques should be used to ensure firm connections. Connections to the
transformer bushing-stem, drop out fuse, isolator, and LT switch etc should be periodically
inspected and proper pressure maintained to avoid sparking and heating of contacts.
Replacement of deteriorated wires and services should also be made timely to avoid any
cause of leaking and loss of power.
Poornima College of Engineering Dr. Gaurav Jain, EE Dept

Feeder Phase Current and Load Balancing

One of the easiest loss savings of the distribution system is balancing current along three-
phase circuits. Feeder phase balancing also tends to balance voltage drop among phases
giving three-phase customers less voltage unbalance. Amperage magnitude at the substation
doesn‘t guarantee load is balanced throughout the feeder length. Feeder phase unbalance may
vary during the day and with different seasons. Feeders are usually considered ―balanced‖
when phase current magnitudes are within 10. Similarly, balancing load among distribution
feeders will also lower losses assuming similar conductor resistance. This may require
installing additional switches between feeders to allow for appropriate load transfer.
Load Factor Effect on Losses
Power consumption of customer varies throughout the day and over seasons. Residential
customers generally draw their highest power demand in the evening hours. Same
commercial customer load generally peaks in the early afternoon. Because current level
(hence, load) is the primary driver in distribution power losses, keeping power consumption
more level throughout the day will lower peak power loss and overall energy losses. Load
variation is called load factor and it varies from 0 to 1.
Load Factor=Average load in a specified time period / peak load during that time period.
For example, for 30days month (720 hours) peak load of the feeder is 10 MW. If the feeder
supplied a total energy of 5,000 MWH, the load factor for that month is (5,000 MWh)/
(10MW x 720) =0.69.
Lower power and energy losses are reduced by raising the load factor, which, evens out
feeder demand variation throughout the feeder. The load factor has been increased by
offering customers ―time-of-use‖ rates. Companies use pricing power to influence consumers
to shift electric-intensive activities during off-peak times (such as, electric water and space
heating, air conditioning, irrigating, and pool filter pumping).
With financial incentives, some electric customers are also allowing utilities to interrupt large
electric loads remotely through radio frequency or power line carrier during periods of peak
use. Utilities can try to design in higher load factors by running the same feeders through
residential and commercial areas
Transformer Sizing and Selection
Distribution transformers use copper conductor windings to induce a magnetic field into a
grain-oriented silicon steel core. Therefore, transformers have both load losses and no-load
core losses. Transformer copper losses vary with load based on the resistive power loss
equation (Ploss = I2R). For some utilities, economic transformer loading means loading
distribution transformers to capacity or slightly above capacity for a short time in an effort to
minimize capital costs and still maintain long transformer life. However, since peak
generation is usually the most expensive, total cost of ownership (TCO) studies should take
into account the cost of peak transformer losses. Increasing distribution transformer capacity
during peak by one size will often result in lower total peak power dissipation-more so if it is
over loaded. Transformer no-load excitation loss (iron loss) occurs from a changing magnetic
field in the transformer core whenever it is energized. Core loss varies slightly with voltage
but is essentially considered constant. Fixed iron loss depends on transformer core design and
Poornima College of Engineering Dr. Gaurav Jain, EE Dept

steel lamination molecular structure. Improved manufacturing of steel cores and introducing
amorphous metals (such as metallic glass) have reduced core losses.
Balancing Three Phase Loads
Balancing 3-phase loads periodically throughout a network can reduce losses significantly.
It can be done relatively easily on overhead networks and consequently offers considerable
scope for cost effective loss reduction, given suitable incentives.
Switching off Transformers
One method of reducing fixed losses is to switch off transformers in periods of low demand.
If two transformers of a certain size are required at a substation during peak periods, only one
might be required during times of low demand so that the other transformer might be
switched off in order to reduce fixed losses.
This will produce some offsetting increase in variable losses and might affect security and
quality of supply as well as the operational condition of the transformer itself. However, these
trade-offs will not be explored and optimized unless the cost of losses are taken into account.
Other Reasons for Technical Losses
• Unequal load distribution among three phases in L.T system causing high neutral currents.
• Leaking and loss of power
• Over loading of lines.
• Abnormal operating conditions at which power and distribution transformers are operated
• Low voltages at consumer terminals causing higher drawl of currents by inductive loads.
• Poor quality of equipment used in agricultural pumping in rural areas, cooler airconditioners
and industrial loads in urban areas.
Reducing Technical Losses
Converting LV Line to HV Line
Many distribution pockets of low voltage (430V) in town are surrounded by higher voltage
feeders. At this lower voltage, more conductor current flows for the same power delivered,
resulting in higher I2R losses. Converting old LV (430V) feeders to higher voltage the
investment cost is high and often not economically justifiable but if parts of the LV (430V)
primary feeders are in relatively good condition, installing multiple step-down power
transformers at the periphery of the 430 volt area will reduce copper losses by injecting load
current at more points (i.e., reducing overall conductor current and the distance travelled by
the current to serve the load).
Large Commercial / Industrial Consumer get direct Line from Feeder
Design the distribution network system in such a way that if it is possible than large
consumer gets direct power line from feeder.
Adopting High Voltage Distribution Service (HVDS) for Agricultural Customer
In High Voltage Direct Service (HVDS), 11KV line direct given to cluster of 2 to 3
Agricultural Customer for Agricultural Pump set and employed small distribution
Transformer (15KVA) for given these 2 to 3 customer through smallest ( almost negligible)
LT distribution lines. In HVDS, there is less distribution losses due to minimum length of
distribution line, high quality of power supply with no voltage drop, less burn out of motor
Poornima College of Engineering Dr. Gaurav Jain, EE Dept

due to less voltage fluctuation and Good quality of Power, to avoid overloading of
transformer.
Adopting Arial Bundle Conductor (ABC)
Where LT Lines are not totally avoidable use Arial Bundle Conductor to minimize faults in
lines to avoid direct theft from line (tampering of line).
Reduce Number of Transformer
1) Reduce the number of transformation steps.
2) Transformers are responsible for almost half of network losses.
3) High efficiency distribution transformers can make a large impact on reduction of
distribution losses.
Utilize Feeder on its Average Capacity
By overloading of distribution feeder, distribution losses will be increased. The higher the
load on a power line, the higher its variable losses. It has been suggested that the optimal
average utilizations rate of distribution network cables should be as low as 30% if the cost of
losses is taken into account.
Replacements of Old Conductor or Cables
By using the higher the cross-section area of conductor / cables, the losses will be lower but
the same time cost will be high. So, by forecasting the future load, an optimum balance
between investment cost and network losses should be maintained.
Feeder Renovation / Improvement Program
•Re-conducting of Transmission and Distribution Line according to Load.
• Identification of the weakest areas in the distribution system and strengthening or improving
them.
• Reducing the length of LT lines by relocation of distribution sub stations or installations of
additional new distribution transformers.
• Installation of lower capacity distribution transformers at each consumer premises instead
of cluster formation and substitution of distribution transformers with those having lowered
no load losses such as amorphous core transformers.
•Installation of shunt capacitors for improvement of power factor.
• Installation of single-phase transformers to feed domestic and nondomestic load in rural
areas.
• Providing of small 25kVA distribution transformers with a distribution box attached to its
body, having provision for installation of meters, MCCB and capacitor.
• Lying of direct insulated service line to each agriculture consumer from distribution
transformers.
• Due to Feeder Renovation Program T&D loss may be reduced from 60-70% to 15-20%.
Industrial / Urban Focus Program
•Separations of rural feeders from industrial feeder s
•Instantly release of New Industrial or HT connections
•Identify and replacement of slow and sluggish meters by electronics type meters.
• In industrial and agricultural consumer adopt one consumer, one transformer scheme with
meter should be Introduced.
•Change of old service line by armoured cable .
• Due to Feeder Renovation Program, T&D loss may be reduced from 60-70% to 15-20%.
Strictly Follow Preventive Maintenance Program
Poornima College of Engineering Dr. Gaurav Jain, EE Dept

• Required to adopt Preventive Maintenance Program of Line to reduce Losses due to Faulty /
Leakage Line Parts.
• Required to tights of Joints, Wire to reduce leakage current.
Non-Technical / Commercial Losses
Non-technical losses are at 16.6%, and related to meter reading, defective meter and error in
meter reading, billing of customer energy consumption, lack of administration, financial
constraints, and estimating unmetered supply of energy as well as energy thefts.
Main Reasons for Non-Technical Losses
Power Theft
Theft of power is energy delivered to customers that is not measured by the energy meter for
the customer. Customer tempers the meter by mechanical jerks, placement of powerful
magnets or disturbing the disc rotation with foreign matters, stopping the meters by remote
control.
Metering Inaccuracies
Losses due to metering inaccuracies are defined as the difference between the amount of
energy actually delivered through the meters and the amount registered by the meters. All
energy meters have some level of error which requires that standards be established.
Measurement Canada, formerly Industry Canada, is responsible for regulating energy meter
accuracy. Statutory requirements5 are for meters to be within an accuracy range of +2.5%
and – 3.5%. Old technology meters normally started life with negligible errors, but as their
mechanisms aged they slowed down resulting in under-recording. Modern electronic meters
do not under-record with age in this way. Consequently, with the introduction of electronic
meters, there should have been a progressive reduction in meter errors. Increasing the rate of
replacement of mechanical meters should accelerate this process.
Unmetered Losses for very small Load
Unmetered losses are situations where the energy usage is estimated instead of measured with
an energy meter. This happens when the loads are very small and energy meter installation is
economically impractical. Examples of this are streetlights and cable television amplifiers.
Unmetered Supply
Unmetered supply to agricultural pumps is one of the major reasons for commercial losses. In
most states, the agricultural tariff is based on the unit horsepower (HP) of the motors. Such
power loads get sanctioned at the low load declarations. Once the connections are released,
the consumers increase their connected loads without obtaining necessary sanction for
increased loading from the utility. Further, estimation of the energy consumed in unmetered
supply has a great bearing on the estimation of T&D losses on account of inherent errors in
estimation. Most of the utilities deliberately overestimate the unmetered agricultural
consumption to get higher subsidy from the State Government and also project reduction in
losses. In other words, higher the estimates of the unmetered consumption, lesser the T&D
loss figure and vice versa. Moreover, the correct estimation of unmetered consumption by the
agricultural sector greatly depends upon the cropping pattern, ground water level, seasonal
variation, hours of operation etc.
Poornima College of Engineering Dr. Gaurav Jain, EE Dept

Error in Meter Reading

Proper Calibrated Meter should be used to measure electrical energy. Defective Energy Meter
should be replaced immediately. The reason for defective meter are burning of meters, burn
out terminal box of meter due to heavy load, improper C.T ratio and reducing the recording,
Improper testing and calibration of meters.
Billing Problems
• Faulty and untimely serving bill should be main part of non-technical losses.
• Normal complaint regarding billing are not receipt of bill, late receipt of bill, receiving
wrong bill , wrong meter reading, wrong tariff, wrong calculations.
Reducing Non-Technical Losses
Making mapping / Data of Distribution Line
1) Mapping of complete primary and secondary distribution system with all parameters
such as conductor size, line lengths etc.
2) Compilation of data regarding existing loads, operating conditions, forecast of expected
loads etc.
3) Preparation of long-term plans for phased strengthening and improvement of the
distribution systems along with transmission system.
Implementation of Energy Audits Schemes
It should be obligatory for all big industries and utilities to carry out energy audits of their
system. Further, time bound action for initiating studies for realistic assessment of the total
T&D losses into technical and non-technical losses has also to be drawn by utilities for
identifying high loss areas to initiate remedial measures to reduce the same.
The realistic assessment of T&D loss of a utility greatly depends on the chosen sample size
which in turn has a bearing on the level of confidence desired and the tolerance limit of
variation in results. In view of this, it is very essential to fix a limit of the sample size for
realistic quick estimates of losses.
Mitigating power theft by Power theft checking Drives
• Theft of electric power is a major problem faced by all electric utilities. It is necessary to
make strict rule by state government regarding power theft. Indian Electricity Act has been
amended to make theft of energy and its abetment as a cognizable offence with deterrent
punishment of up to 3 years imprisonment. The impact of theft is not limited to loss of
revenue, it also affects power quality resulting in low voltage and voltage dips.
• Required to install proper seal management at meter terminal box, at CT/PT terminal to
prevent power theft. Identify power theft area and required to expedite power theft checking
drives.
• Installation of medium voltage distribution (MVD) networks in theft-prone areas, with
direct connection of each consumer to the low voltage terminal of the supply transformer.
•All existing unmetered services should be immediately stopped. Replacement of
Faulty/Sluggish Energy Meter
• It is necessary to replace faulty or sluggish meter by distribution agency to reduce
unmetered electrical energy
Poornima College of Engineering Dr. Gaurav Jain, EE Dept

• Required to test meter periodically for testing of accuracy of meter. Replacement of old
erroneous electromechanical meters with accurate electro static meter (Micro presser base)
for accurate measurement of energy consumption.
• Use of meter boxes and seals them properly to ensure that the meters are properly sealed
and cannot be tampered.
Bill Collection Facility
1) Increase bill‘s payment cells, increasing drop box facility in all area for payment
collection.
2) E-payment facility gives more relief to customer for bill payment and supply agency will
get payment regularly and speedily from customer.
3) Effectively disconnect the connection of defaulter customer who does not pay the bill
rather than give them chance to pay the bill.
Reduce Debit areas of Sub-Division
1) Recovery of old debts in selected cases through legal, communication and judicial
actions.
2) Ensuring police action when required to disconnect connection of defaulter Consumer.
3) Users must aware that the distribution Agency can monitor consumption at its
convenience. This allows the company fast detection of any abnormal consumption due
to tampering or by-passing of a meter and enables the company to take corrective action.
4) The result is consumer discipline. This has been shown to be extremely effective with all
categories of large and medium consumers having a history of stealing electricity. They
stop stealing once they become aware that the utility has the means to detect and record
it.
5) These measures can significantly increase the revenues of utilities with high non-
technical losses.
Loss Reduction Programmed
• The increased hours of supply to agriculture and rural domestic consumers have resulted in
higher loss levels.