Module 2
Module 2
Electrical Billing
The electricity billing by utilities for medium & large enterprises, in High Tension (HT) cate
gory, 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 levied w.r.t units consumed.
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 trivector meter, for billing
purposes. The minimum outputs from the electromagnetic meters are
Maximum demand registered during the month, which is measured in preset time
intervals (say of 30-minute duration) and this is reset at the end of every billing cycle.
Active energy in kWh during billing cycle
Reactive energy in kVArh during billing cycle and
Apparent energy in kVAh during billing cycle
It is important to note that while maximum demand is recorded, it is not the
instantaneous demand drawn, as is often misunderstood, but the time integrated demand
over the predefined recording cycle.
As can be seen from the Figure 1.4 above the demand varies from time to time. The
demand is measured over predetermined time interval and averaged out for that interval as
shown by the horizontal dotted line.
Of late most electricity boards have changed over from conventional electromechanical
trivector meters to electronic meters, which have some excellent provisions that can help the
utility as well as the industry. These provisions include:
Substantial memory for logging and recording all relevant events
High accuracy up to 0.2 class
Amenability to time-of-day tariffs
Tamper detection /recording
Measurement of harmonics and Total Harmonic Distortion (THD)
Long service life due to absence of moving parts
Amenability for remote data access/downloads
Trend analysis of purchased electricity and cost components can help the industry to
identify key result areas for bill reduction within the utility tariff available framework along
the following lines.
Electrical Load Management and 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
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.
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 preset 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 preset 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.
Various types of automatic power factor controls are available with relay / microprocessor
logic. Two of the most common controls are: Voltage Control and kVAr Control
Voltage Control
Voltage alone can be used as a source of intelligence when the switched capacitors are
applied at point where the circuit voltage decreases as circuit load increases. Generally, where
they are applied the voltage should decrease as circuit load increases and the drop in voltage
should be around 4 – 5 % with increasing load.
Voltage is the most common type of intelligence used in substation applications, when
maintaining a particular voltage is of prime importance. This type of control is independent of
load cycle. During light load time and low source voltage, this may give leading PF at the
substation, which is to be taken note of.
KILOVAR Control
Kilovar sensitive controls (see Figure 10.2) are used at locations where the voltage level
is closely regulated and not avail able as a control variable. The capacitors can be switched to
respond to a decreasing power factor as a result of change in system loading. This type of
control can also be used to avoid penalty on low power factor by adding capacitors in steps as
the system power factor begins to lag behind the desired value. Kilovar control requires two
inputs - current and voltage from the incoming feeder, which are fed to the PF correction
mechanism, either the microprocessor or the relay.
It controls the power factor of the installation by giving signals to switch on or off power factor
correction capacitors. Relay is the brain of control circuit and needs contactors of appropriate
rating for switching on/off the capacitors. There is a built-in power factor transducer, which
measures the power factor of the installation and converts it to a DC voltage of appropriate
polarity. This is compared with a reference voltage, which can be set by means of a knob
calibrated in terms of power factor.
When the power factor falls below setting, the capacitors are switched on in sequence. The
relays are provided with First in First out (FIFO) and First in Last Out (FILO) sequence. The
capacitors controlled by the relay must be of the same rating and they are switched on/off in
lin ear sequence. To prevent over correction hunting, a dead band is provided. This setting deter
mines the range of phase angle over which the relay does not respond; only when the PF goes
beyond this range, the relay acts. When the load is low, the effect of the capacitors is more pro
nounced and may lead to hunting. Under current blocking (low current cut out) shuts off the
relay, switching off all capacitors one by one in sequence, when load current is below setting.
Special timing sequences ensure that capacitors are fully discharged before they are switched
in. This avoids dangerous over voltage transient. The solid-state indicating lamps (LEDS) dis
play various functions that the operator should know and also and indicate each capacitor
switching stage.
All of these changes to reduce motor losses are possible with existing motor design and
manufacturing technology. They would, however, require additional materials and/or the use
of higher quality materials and improved manufacturing processes resulting in increased motor
cost.
Electrical power problems, especially poor incoming power quality can affect the operation
of energy-efficient motors.
Speed control is crucial in some applications. In polyphase induction motors, slip is a measure
of motor winding losses. The lower the slip, the higher the efficiency. Less slippage in energy
efficient motors results in speeds about 1% faster than in standard counterparts.
Starting torque for efficient motors may be lower than for standard motors. Facility managers
should be careful when applying efficient motors to high torque applications.
Fans
Pumps
LIGHTING SYSTEM
Energy-Efficient Lighting
Energy-efficient lighting involves using advanced lighting technologies that consume less
electricity while providing the same or better light quality compared to traditional lighting
systems. It helps reduce energy consumption, electricity bills, and environmental impacts.
1. Cost Savings
Lower Electricity Bills: Energy-efficient lighting, such as LEDs, uses significantly less
energy than traditional incandescent bulbs.
Reduced Maintenance Costs: Longer lifespans mean fewer replacements and lower
maintenance expenses.
2. Environmental Benefits
Reduced Carbon Footprint: Energy-efficient lighting reduces energy consumption,
leading to fewer greenhouse gas emissions from power plants.
Minimized Waste: Longer-lasting bulbs generate less waste over time.
4. Enhanced Longevity
Energy-efficient bulbs, particularly LEDs, can last 15–25 times longer than traditional
incandescent lights, reducing the frequency of replacements.