Power factor incentive / penalty

The following incentive and disincentive shall be applicable to LT industrial consumers with a connected load of and above 20 kW, HT&EHT Consumers for power factor improvement.

PF range (lag)

Incentive/ Penalty


Above 0.95 and upto 1.00

0.50% of the Energy Charge for each 0.01 unit increase in power factor from 0.95


0.90 and upto 0.95

0.50% of the energy charges for every 0.01 fall in PF below 0.95 and upto 0.90

below 0.90

1% of the energy charge for every 0.01 fall in PF from 0.90

Note: No penalty and incentives for consumers with leading power factor.

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