Reactive Power Charges

Electrical equipment doesn't just use "real" power that does useful work - it also draws "reactive" power that oscillates back and forth without producing useful output. This reactive power still uses network capacity, so customers with significant reactive power consumption pay additional charges.

Understanding power factor: The efficiency of power usage is measured as "power factor" - a perfect score is 1.0, meaning all power drawn is used productively. Distribution networks typically expect a power factor of at least 0.95. If your factor falls below this threshold, you'll pay reactive power charges based on the kVArh (kilovolt-ampere reactive hours) recorded.

Who pays reactive power charges:

• Only half-hourly metered customers (Profile Classes 00, 05-08)
• Only when power factor drops below the threshold (typically 0.95)
• Charged in pence per kVArh

Common causes of poor power factor:

• Electric motors (especially older or under-loaded ones)
• Fluorescent lighting with magnetic ballasts
• Air conditioning compressors
• Welding equipment

Solutions: If you face these charges, power factor correction equipment (capacitor banks) can often reduce or eliminate them, with installation costs typically recovered through bill savings within 1-2 years.