, Energy Conservation & Management
Unit- II
Electricity Billing - HT Supply
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 of HT Electricity Billing
The tariff structure of HT supply 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
Power factor penalty or bonus rates, as levied by most utilities, are to contain reactive
power drawn from grid.
d) Fuel cost
Fuel cost adjustment charges as levied by some utilities are to adjust the increasing fuel
Dept of EEE, SVCE, Dr K Sudheer Page 2
, Energy Conservation & Management
expenses over a base reference value.
Dept of EEE, SVCE, Dr K Sudheer Page 3
Unit- II
Electricity Billing - HT Supply
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 of HT Electricity Billing
The tariff structure of HT supply 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
Power factor penalty or bonus rates, as levied by most utilities, are to contain reactive
power drawn from grid.
d) Fuel cost
Fuel cost adjustment charges as levied by some utilities are to adjust the increasing fuel
Dept of EEE, SVCE, Dr K Sudheer Page 2
, Energy Conservation & Management
expenses over a base reference value.
Dept of EEE, SVCE, Dr K Sudheer Page 3
