Chapter 5
Syllabus
5.1 Tariff: Desirable characteristics, types(Flat rate, block rate, KVA maximum demand and
Time of Day tariff).
5.2 Power factor: Disadvantage of low power factor, advantages of improved p.f., causes of
low p.f., avoidance of low p.f. without using p.f. improvement devices.
5.3 Power factor improvement using; static capacitor, most economical power factor, location
of power factor improvement devices from consumer and electrical supply company point of
view.
5.1 Meaning of Tariff (Definition of Tariff)
Tariff means schedule of rates or charges.
Tariff in case of electric supply means schedule or rates framed for supply of
electric energy to the different classes of consumers.
5.1.2 Desirable Characteristics of Tariff
Main Characteristics of Tariff
1. Attraction of consumers
2. Simplicity in understanding the tariff
3. Reasonable and fair enough
4. Proper retums to company
5. Reasonable profit to company
1. Attraction of consumers :-
Companies aim is always attract as many consumers possible which is beneficial to company.
To attract consumers, and frame the tariff such that consumers can afford to pay easily. Less
rate for first 20 to 30 units of consumption so that poor consumers are encouraged.
2. Simplicity in understanding the tariff :-
The tariff should be so simple that one can understand very easily. No hitches in it, easy for
calculations.
If tariff is complicated, and not understandable, a lot of complaints may be received and will
spoil the friendly atmosphere and mutual relations of company and consumers.
3. Reasonable and fair enough
The tariff must be framed such that all the consumers are satisfied with the rate of charge of
energy per unit.
It is the general practice that big consumers are charged at a lower rate than small consumers.
This is advantageous to the company also such that increased energy consumption spreads
the fixed charges over large number of units which results in reduction of overall cost of
production of energy.
4. Proper returns to company
The tariff must be equal to the cost of producing and supplying electrical energy plus
reasonable [Link] assures continuous and reliable supply which is very important.
Properly designed tariff ensures the proper returns from each consumer.
5. Reasonable profit to company
There should be logical profit component in tariff.
Generally electric companies are public utility companies and no other companies for
[Link] such company enjoys the benefits of monopoly therefore the investment is
relatively very [Link] suggest that profit is less than or equal to 8% only.
5.1.3 Types of Tariff (Flat rate, block rate, KVA maximum demand and Time of Day tariff).
Flat rate Tariff :-
In this type of tariff, different types of consumers are charged at different
rates ie. the flat rate for light and fan loads is slightly higher than that for power load. The
rate for each category of consumers is framed by taking into accounts its load factor and
diversity [Link] method is usually most popular with the public, since it can easily be
understood by the consumers and the calculations at the supplier's end are simple. If the
energy consumed during the billing period is x units and the flat rate is a per unit then charges
are axle. for 200 units @ 2.5 the bill will be 200 x 2.5-500
Block rate Tariff :-
The first block of energy is charged at higher rate and succeeding blocks of
energy are charged at progressively reduced rates, for example,
The first 30 units may be charged at the rate of 4.0 paise/[Link] next 50
units may be charged at the rate of 3.50 per [Link] consumption exceeding 100 units may
be charged at the rate of 3.0 per unit.
The advantage of such a tariff is that the consumer gets an incentive for
consuming more electrical energy. This increases the load factor of the system and hence the
generation cost is reduced. The drawback is that it lacks a measure of the consumer's demand.
This tariff is most popular now-a-days among domestic, commercial and small industrial
consumers.
KVA maximum demand :-
This type of tariff is derived by modifying form of two part tariff. in this
case, maximum demand is measured in kVA instead of in kW. This type of tariff encourages
the consumers to operate their machines and other equipment at Improved power factor,
because low power factor will cause more demand charges.
Time of Day tariff :-
This tariff is also called as Time of Day metering or Time of Usage (TOU)
or Seasonal Time of Day (STOD). The scheme of this tariff is such that the consumer has to
pay less in non-peak load period of the day and to pay at higher rate during the peak-load
period.
For such tariff scheme the metering involves dividing the day, month and
year into tariff [Link] tariff is beneficial to the consumer as well as to the electricity
supply company. This is because it controls the usage on the part of consumer resulting in
automatic load control on the part of the company.
It is the consumer's responsibility to control his own usage or pay more on peak load.
Naturally consumer avoids the usage during peak load period and the load is thus controlled.
This helps the electricity company to plan transmission-distribution infrastructure.
The peak load is generally in the day time of 1 pm to 6 pm or upto 9 pm.
In summer days, peak-load period is generally 6 to 12 noon in winter, evening 5 to 8 pm.
This tariff spilts the rate into two segments:
In peak
Off peak load and charges are decided by the company and revising the rates as and when the
company [Link] rates of tariff vary from place to place, region to region. Generally
large consumers adopt this tariff. It helps to flatten the load curve of the system.
5.2 Power factor: Disadvantage of low power factor, advantages of improved p.f., causes of
low p.f., avoidance of low p.f. without using p.f. improvement devices.
Disadvantages of Low Power Factor :-
Advantages of improved P.F. :-
(1) If P.F. is improved the current in the system for the same power is reduced.
I= W
P.F.
(2) Reduction in the current reduces C.S. area of conductors and lines.
(3) Reduction in conductor size reduces weight of line.
(4) If weight of line reduces, supporting structures are of low capacity can be used.
All these, reduces the cost.
(5) Efficiency increases, regulation decreases.
In short the advantages can be summarized as
(i) Reduction in load current
(ii) Increases voltage level across the load
(iii) Energy losses in the system are reduced.
(iv) Increases efficiency, reduces line losses.
(v) Better voltage regulation.
(vi) Reduction in kVA capacity of machines.
(vii) Overall benefits in the cost.
Causes of Low P.F.:-
(1) Motors operating at lagging power factor.
(2) Arc-Lamps/electric discharge lamps.
(3) Low load period on the supply system.
(4) Improper maintenance of machines.
(5) Repairs of motor.
(6) Warn-out bearings.
(7) Industrial heating furnaces.
These are the causes of Low power factors. Let us elaborate the above causes
(1) Motors operating at lagging power factor
Motors operating on AC supply mostly have lagging power factor (except 3-ph, synchronous
motor which can be operated at any type of power factor and commulator motors)
At low loads the induction motor operates at less P.F. 0.7, 0.6, 0.5 even lesser at light load
and at no load.
(2) Arc Lamps and electric discharge lamps are operating at a low power factor.
(3) Low load period on the supply system
During this period the supply voltage increases the magnetizing current of inductive
reactance increases. This affects the P.F. of the electric plant and total P.F. becomes low.
(4) Improper maintenance of machines
(5) Repairs of motor
If periodic maintenance is not exercised properly them P.F. is affected. In repairing of the
motors or rewinding of the motors, less winding turns may be provided in such cases leakage
magnetic flux increases due to which P.F. is low due to large magnetizing current.
(6) Warn-out bearings
If proper lubrication and maintenance of bearings is not done, it results in un-uniform air-gap
between static (stator) and rotating (rotor) parts. This results in decreasing P.F. due to large
magnetizing (Iu) current.
(7) Industrial heating furnaces
These furnaces operate at very low P.F. and overall P.F. therefore decreases.
Above are the various causes of low P.F.
Avoidance of Low P.F. Without Using P.F. Improvement Devices :-
(1) If the load is shared by two motors namely 3-phase induction motor and 3-phase
synchronous motor then synchronous motor can be over-excitation mode by increasing its
excitation so that it run with the leading power factor and induction running at lagging p.f.,
then overall p.f. of the system improves
(2) Electric machines such as 3-phase induction motor and transformer can be
loaded to at higher load conditions so that P.F. at higher load is more.
(3) Use of single phase capacitor start and capacitor run motors be used as electric
drives at better power factor.
5.3 Power factor improvement using; static capacitor, most economical power factor, location
of power factor improvement devices from consumer and electrical supply company point of
view. :-
Using Static Capacitors :-
Capacitors can be used for Improving P.F. Many of the loads, equipments are
operating at lagging power factor. Capacitors are leading p.f. units. So when connected,
overall p.f. improves. If the load is 3-phase inductive load (or 3-phase induction motor
connected to 3-phase supply) then capacitor 3-phase bank either connected in star or Delta be
connected to the 3 phase supply voltage on which 3-phase load is connected.
Advantages
Static capacitors consume very small power and losses are thus negligible so overall
efficiency improves.
Cost of the capacitor unit is comparatively less.
Being static, no-rotation maintenance is nil,
No imbalance (as in rotating unit).
Very light in weight.
Easy in installation.
Capability to operate under ordinary atmospheric conditions.
Disadvantages
(i) Less life (only upto 10 years).
(ii) In over loading may damage.
(iii) Repairs not possible (so replacement).
Most Economical Power Factor :-
Location of Power Factor Improvement Devices from consumer and Electrical Supply
Company Point of View :-
The scope of installing such equipments is right from generating station to
various load points. The ideal location will be that place where m/c or apparatus which is
responsible for 'Low P.F.
Following are the different important locations:
(i) Load centres where considerable corrective KVAR is required synchronous condensers as
a p.f. improver is used.
(ii) Where a smaller inductive load is installed static capacitors are installed near to (Due to
low p.f. the feeders and distributors carry heavy currents, P.F. improvement device safe
guards in such situation.)
(iii) in case of transmission line, the most suited place of installing p.f. improving devices (ie.
synchronous condensers) is at the receiving end side of the line. This location helps
generators, transmission line are relieved from excessive current due to poor p.f.
(iv) in case of generator, near to it the p.f. improvement device can be conveniently installed.
But it will safeguard generator and not the transmission line.