The Ministry of Power has released new late payment surcharge regulations that will apply to power purchase agreements (PPAs) and transmission service agreements whose tariffs were decided through competitive bidding.
Late payment surcharges are fees paid by a distribution company (DISCOM) to a generating firm or an energy trader for power purchased, or by a transmission system user to a transmission licensee, for failure to pay monthly charges by the due date.
According to the ‘Late Payment Surcharge Rules, 2021,’ a late payment surcharge of the base rate of late payment surcharge for the first month of default will be levied on any outstanding payment after the due date. For each month that a payment is late, the late payment surcharge rate will increase by 0.5 percent. At any moment, the surcharge shall not be more than 3% of the base rate.
When the rate of late payment surcharge is not higher than the rate indicated in the agreement for the purchase or transmission of power, the rule will apply.
What is the formula for calculating the load factor surcharge?
A few simple numbers from the electric bill are used to compute the load factor. The following information is required:
The load factor formula expresses a ratio between the actual kilowatt-hours utilized and the total feasible kilowatt-hours at a certain kW level.
kWh
The red box in the diagram on the right depicts the total available kilowatt-hours defined by the peak of power use. The blue area indicates the actual kilowatt-hours utilized during the month (daily profile shown to simplify drawing). The area that is not shaded symbolizes unused capacityspace where energy could have been used but wasn’t. The idea is that you paid for the entire box’s capacity (demand) but only used a small amount of it (demand fee). Everything in the open area is capacity that you paid for but never used.
Demand control can be conceptualized as shrinking the total size of the box by lowering the height. The yellow line in the diagrams below represents the demand limit or set point. The peak demand is minimized via load management when an Energy Sentry demand controller is used, and the initial peak of energy use is redistributed below the limit. It’s not about reducing the amount of electricity used, but rather when it’s used.
Using Load Factor to Determine Demand Limit
Take the actual kWhs used by a home in a given month and divide by 720 (total hours in an average 30-day month) to determine a kW demand limit for a particular percentage load factor:
If you want a 60 percent load factor, divide the 4.16 (100 percent load factor) by.60.
If you know the kW peak and the kWh, you can calculate the load factor by multiplying the kW by the total hours and dividing the actual kWhs by that figure. Consider the following scenario:
Recommended Maximum Demand Limits (Typical Residential Application)
Note that the demand limit may be higher or lower depending on the individual’s lifestyle or weather extremes.
Calculating Load Factor with Time-Of-Use Rates
If you’re working with TOU rates, you’ll need to compute load factor differently. The On-Peak and Off-Peak times for Time-of-Use tariffs must be computed individually. The following are the only modifications:
- To figure out how many On-Peak hours there were throughout the billing period and how many kilowatt-hours were used during that time
- During the billing period, the Off-Peak hours and the kWh’s used during this time
Use the appropriate Peak kW and the basic load factor calculation above if the Peak was different between On and Off-Peak times.
Calculating the Off-Peak load factor isn’t necessary if the TOU rate you’re working with doesn’t bill for demand during off-peak periods.
Example
- Utilize the appropriate Peak kW and use the basic load factor calculation above if the Peak was different between On and Off-Peak times.
- Calculating an Off-Peak load factor isn’t necessary if the TOU rate you’re dealing with doesn’t bill for demand during off-peak periods.
Simply take the energy utilized during the On-Peak times and apply the load factor calculation to get the On-Peak load factor. Assume that 4,000 kilowatt-hours were consumed throughout the billing period. With an 8kW demand, we’ll suppose 15 percent, or 600 kwh, were consumed On-Peak. The load factor is as follows:
What factors go into determining the cost of electricity?
The price of power delivered by your electric provider is expressed in kilowatt-hours. Divide your total power bill, minus any taxes, by your total power consumption to get your kilowatt-hour rate.
Once you have that amount, you may use the formula below to figure out how much you pay for electricity.
Your power cost is $0.12 per kWh if your total monthly power bill is $327, your electricity taxes are $27, and your monthly power use is 2,500 kWh.
What is the formula for calculating the electric demand charge?
Demand charges are derived by multiplying the current per kW rate by the highest 15-minute interval of power consumption throughout the billing cycle. As a point of comparison, United Power’s average household demand is 7 kW.
What does it mean to have a surcharge on your electricity bill?
Consumers who do not pay their electricity bills on time will be charged a payment premium. For receivables liquidated up to the due date, a late payment premium is levyable or earned. There is a late payment cost.
Is it allowed to levy a surcharge in India?
It is prohibited to pass on a premium to the customer. In a December 27, 2017 notification, the RBI instructed banks to ensure that merchants do not pass on MDR (merchant discount rate) costs to customers when accepting debit card payments.
What is the formula for MD?
(Doctor of Medicine or Alzheimer’s Disease) A more precise measure of variability is the average value of the different deviations from the mean. Mean Deviation (MD), Average Deviation (AD), or Mean Variation are the terms used to describe it (MV). “The average deviation or AD (sometimes called mean deviation or MD) is the mean of the deviations of all the individual scores in a series taken from their mean,” writes Garett.
The bars |. | encircling the x indicate that signs are ignored while calculating the total. As always, x is the score’s divergence from the mean, i.e., X- M=x.
1. Determine the average of the series.
2. Use the formula x = X M to calculate x.
3. Calculate the sum of deviations, or |x|, without taking into account signs, and accept all deviations as positive, whether positive or negative.
4. Subtract |x| from N, the total number of cases.
5. Checking the outcome and reporting it.
Calculation of the Average Deviation or Mean Deviation from Data that are clustered into a frequency distribution mean (50), but have a wide range of variability. Group A has a range of 20 to 80, whereas Group B has a range of 40 to 60. Although both distributions have the same central tendency, Group A is three times as variable as Group B, spanning three times the distance on the scale of scores.
How do you figure out what the sanctioned load is?
- Tariff and Category establish the rate structure that will be applied to the bill. Typical tariff codes begin with LT (Low Tension 230V single phase or 400 V three phases) or HT (High Tension 230V single phase or 400 V three phases) (High Tension 11kV and above). LT codes are commonly used for residential, business, and small office connections. Larger companies and complexes generally utilize HT codes. The bill’s category defines whether the connection is for residential, commercial, or industrial use. Different tariff codes apply to different rates/slabs, so it’s crucial to double-check that the correct tariff code is used on the electricity bill. As seen below, this information is available on the bill header:
- Type of Supply & Connected Load (Fixed State/DISCOM Charges): The total pool of supply that is delivered to a meter is known as the Connected (or Sanctioned) Load. This is measured in kW. (or Killo-Watts). This is the maximum cumulative peak kW that can be assigned to a meter based on the appliances that are connected to it. This isn’t your actual energy usage; it simply affects your electricity bill’s set charges. The connected load also influences whether the connection is three-phase or single-phase. If the real load is higher than the sanctioned load, the fixed charges for that month will be affected, and some DISCOMs levy a penalty of higher fixed costs for the incremental increase in the actual load drawn. Every DISCOM has a method of determining the load to be sanctioned to the application, which should be checked on the company’s website because it differs widely, for example:
- Based on the load of the linked appliances and the redundancy factor, an assessment is made.
- Consumed Units (Unit Rates per State/Discom): The number of kWh (Kilowatt-Hour) consumed in a month is measured in units consumed. 1 kWh is the same as leaving a 100 Watt light bulb on for 10 hours. The difference between two consecutive month’s meter readings is used to calculate this data. The total monthly usage of all appliances linked to the meter is calculated here. This is the figure that must be reduced in order to lower the electricity cost. An analysis of consumption patterns can reveal which appliances use more electricity (typically Air Conditioners increase consumption in summers). You can use this link to estimate your likely energy use in units (kWh) based on the information from connected appliances in your home and average daily consumption.
- Tariff Structure: It’s critical to pay attention to the tariff structure on your statement because it’s the best predictor of how much you can save. The construction is often slab-based for residential and SMB commercial connections (unlike industrial connections where units are charged at a high flat-rate). The goal of the slab structure is to encourage low-energy users while penalizing those who consume a lot of energy. The slabs are based on the previously mentioned “Units Consumed.” The energy charge fluctuates as the number of units consumed increases, as do the fixed costs associated (single-phase) with the slab. Here’s an example of a Mumbai bill’s rate structure:
- Fuel Adjustment Charge (FAC): As seen in the tariff structure above, each slab has a different FAC rate. This is the extra power cost incurred owing to gasoline price increases over the course of a year. Coal is used as a source of energy in the majority of cases. According to a study, coal output rates would begin to drop after 2011, reaching 1990 levels by 2037 and reaching 50% of peak value in 2047. As a result, FAC will continue to rise until other sources of electricity are created to the point where they can generate electricity at that low a cost. As a result, electricity prices will almost certainly rise in the future.
- Electricity Duty/Taxes (Relevant State Taxes): Each state has an Electricity (Duty) Act that defines the applicable taxes for various tariff structures, which can be found on one’s electricity bill. It should be noted that this tax is not covered by the GST as of one date. The following are the taxes that apply in Rajasthan (for example) for each category:
What is the formula for the power factor?
Because the power factor equals the cosine of the phase difference between voltage and current, it is calculated using the formula Power Factor = cos, where is the phase difference between voltage and current phasor.
What is the formula for calculating a bill reading meter?
You can figure how much your electricity bill should be by conducting your own reading. One of three types of meters will be installed in your home:
Let’s look at how to get the reading from each type of meter before we show you how to calculate your energy usage.
Your electricity is measured in kilowatt-hours by your meter (kWh). One unit equals one kilowatt-hour. Your statement will usually include a cost per unit, which will come in helpful later when we break down the equation for you.
You’ll normally observe five separate dials while dealing with a dial meter. Use the number that was recently passed if the dial is between two numbers. Only read a number if the dial to its right has passed zero.
You’re undoubtedly curious as to what these statistics imply. They are, after all, symbols for the quantity of energy you consume. The more energy you use, the faster your dial will turn, raising the number on the dial. Consider it like the number of miles on your car’s dashboard. The more miles you travel, the more miles will appear on your dashboard. When it comes to reading your meter, the same principle applies.
Digital and smart meters are far more user-friendly and straightforward. You simply need to take note of the first five figures displayed on a digital meter. If, after the first five numbers on your meter, you observe a group of numbers that starts with 0.1, ignore them.
You can compute how much electricity you’ve used since your last electricity payment after you get your meter reading. To do so, locate your most recent electric statement and look at the reported reading. You’ll then deduct your current reading from the previous month’s reading. The total quantity of kWh you’ve used since your last meter reading is the outcome.
The reading on your meter will never be reset to zero. The number on your meter shows the number of kilowatt hours consumed since the meter was installed. As a result, this number will continue to rise, making it critical to compare your meter readings every month.
Energy companies may bill you based on an estimate created from your home’s historical use, which means you may be charged a higher bill simply because individuals who previously lived in your home utilized a lot of energy.
You’ll also need to know how much your utility company costs per kilowatt hour and if your account includes any fixed fees to compute your bill. You’ll be ready to go after you have that information plus the total quantity of kWh utilized since your last meter reading.
You’ll then multiply this figure by the kWh rate your electricity company charges, as well as any set costs.
- Total kWh used since the last measurement = Current meter reading meter reading indicated on last month’s bill
The equation above will assist you in keeping track of your energy usage. It’s a simple activity that, if completed, can help you save money on a monthly basis. If you care about the environment, you shouldn’t have to pay a hefty energy bill. Calculating it yourself will put an end to your exorbitant bill.