Why a consumer having low power factor is charged at higher rates ?
The correct answer and explanation is:
A consumer with a low power factor is typically charged at higher rates because it results in inefficient use of electrical power, leading to higher costs for the electricity supplier and potentially for the consumer as well. The power factor (PF) measures the efficiency of power usage in a system and is defined as the ratio of real power (active power) to apparent power. A power factor of 1 (or 100%) means that all the power supplied is being used effectively to perform useful work. When the power factor is low, more apparent power is needed to produce the same amount of real power.
In electrical systems, the presence of inductive loads like motors, transformers, and fluorescent lighting causes a lag in the current relative to the voltage. This lag leads to a lower power factor, meaning that the system is drawing more current to supply the same real power. The higher the current required, the greater the losses in the transmission lines, transformers, and other components of the power distribution network.
For utility companies, low power factor means that they need to generate more power, which can lead to higher costs in fuel, infrastructure, and maintenance. To compensate for these additional costs and encourage consumers to improve their power factor, utilities charge a penalty for low power factor. This penalty can take the form of higher electricity rates or charges based on the apparent power (measured in volt-amperes) rather than just the real power (measured in watts).
In some cases, companies may install power factor correction equipment, such as capacitors or synchronous condensers, to improve their power factor. Improving the power factor reduces the load on the electrical grid, lowering the overall cost of electricity distribution, and benefiting both the consumer and the utility company.