(Electrical India, Vol. 48, No. 6, June 08, pp. 53-68)
In this article we show how the apparent energy based tariff is the only single parameter based tariff that is fair and incorporates an embedded power factor based discount mechanism. By having a singular definition of apparent energy and simple digital signal processing based metering technologies we can effectively trigger an electrical revolution - where the market will see rapid sales of efficient electrical appliances.
It is a Win-Win solution where the consumers can avail tariff discounts by becoming more efficient, while the electric utilities can increase their revenue considerably - both through loss reduction and through the collection of penal charges from defaulting consumers. The revolution will see a change in the labeling of appliances with their rating indicated in terms of VA and consumption in VAh.