A majority of energy utility organisations across Australia and New Zealand are now using demand charges calculated in kVA (kilovolt ampere) as opposed to kW (kilowatt) based demand charges which were previously applied. Demand charges based on kVA (or Apparent power) are a more accurate measure of the impact a customer’s peak demand has on the respective network, relative to a tariff based on kW (or real power). This pricing change provides an opportunity for the customer to take steps in improving the efficiency of electricity used on site and therefore reduce their bill. This can be done by improving the overall Power Quality. One such area is looking firstly at Power Factor.
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