e-guide

A guide to
reactive power
For large business customers
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Changing energy prices explained

What is reactive power and how Bad power factor - is low (less 1. Contract type
is it measured? than 0.95) so more reactive power 2. Local Network Operator charging
Reactive Power (kVArh) is the is required. methodology
difference between working Good power factor - is high Contract type
power (active power measured in (greater than 0.95) so power is used
more effectively. If you have a fully inclusive contract,
kW) and total power consumed
you will pay the rate which you
(apparent power measured in kVA). ‘Perfect’ power factor - (1.0) this agreed to on your contract. If you
Some electrical equipment used in is known as unity and does not use have an energy only (supply only)
industrial and commercial buildings any reactive power. contract, you will pay the rate which
requires an amount of ‘reactive
Most electrical equipment, such as has been passed through from your
power’ in addition to ‘active power’
motors, compressors, welding sets Local Network Operator; which may
in order to work effectively.
and even fluorescent lighting, create change if they alter their charging
Reactive power therefore generates an inductive load on the supply. An methodology.
the magnetic fields which are inductive load requires a magnetic Local Network Operator
essential for inductive electrical field to operate, which then causes charging methodology
equipment to operate - especially the electrical current to “lag” the
transformers and motors. This load voltage - i.e. the current is not in Local Network Operator charging
is measured via the reactive register phase with the voltage. steps differ depending on the
on your half hourly meter. location of your site in Great Britain
How is Reactive Power charged? and who serves your network
What is Power Factor and how is
Reactive power is charged according (*see table). Where the first step
it caused?
to the accumulated volume on your excludes a percentage figure, the
Power Factor is the relationship reactive register. Local Network Operator does not
between ‘active’ and ‘reactive’ currently charge for reactive power.
These charges will also vary
power and indicates how effectively
depending on two elements: Where the first step is 33%, the
electrical power is being used:
Local Network Operator does not

e-factsheet B2B-FS-RPG-001-0513 © Copyright EDF Energy 2013. All rights reserved.

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charge for reactive power for the 50% charging step How will this be shown on
first 33% of units (kWh). Charges 2,500 kWh x 50% = 1,250 units my bill?
therefore apply when the difference 2,000 kVArh – 1,250 = 750 If reactive power charges are
between the total units recorded chargeable units applicable for your site, they will
on the reactive register (kVArh) is How will this be shown on my bill? appear within the ‘Consumption
less than 33% of the total units charges’ section of your bill,
consumed (kWh). If reactive power charges are
applicable for your site, they will specifically:
Where the first step is 50%, the appear within the ‘Consumption Price per Total Amount
Local Network Operator does not charges’ section of your bill, unit units (£)
charge for reactive power for the specifically:
Reactive power
XXX XXX XXX
charge
first 50% of units (kWh). Charges
MPAN Local Network 1st 2nd
therefore apply when the difference Operator step step
between the total units recorded 10 UK Power Networks 33% 90% From 1st July 2008, you may also
on the reactive register (kVArh) is 11 Central Networks 33% - notice some additional lines which
less than 50% of the total units 12 UK Power Networks 33% 90% reconcile and adjust for differences
consumed (kWh). 13 Scottish Power 33% - between previous reactive power
For example: 14 Central Networks 33% - units billed and units charged from
Where a meter consumes 2,500
15 CE Electric UK - - your Local Network Operator.
kWh and 2,000 kVArh, reactive
16 United Utilities 33% - This will be shown as follows, for
charges would be applied on 1,175
17 Scottish & Southern - - example:
Energy
units if the charging step was 33% 18 Scottish Power 33% - Price per Total Amount
unit units (£)
or 750 units if the charging step 19 UK Power Networks 33% 90%
Reactive power
was 50%: 20 Scottish & Southern - - charge adjustment XXX XXX XXX
Energy for 30 June 08
33% charging step 21 Western Power 50% -
2,500 kWh x 33% = 825 units Distribution
2,000 kVArh – 825 = 1,175 22 Western Power 50% -
chargeable units Distribution
23 CE Electric UK - -

e-factsheet B2B-FS-RPG-001-0513 © Copyright EDF Energy 2013. All rights reserved.

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What can I do to avoid reactive

power charges?
To avoid reactive power charges,
you can install Power Factor
Correction equipment.
If you are interested in a quotation
to install this equipment, please
contact our expert:
Andrew Morphew
andrew.morphew@edfenergy.com

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e-factsheet B2B-FS-RPG-001-0513 © Copyright EDF Energy 2013. All rights reserved.