Discuss capital and running charges

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Reference no: EM13649318

a) Electrical power generation and transmission requires electrical companies to charge tariff to cover costs and make profit. Discuss their capital and running charges.

An industrial unit utilising electrical machinery has a maximum demand of 250 kW, it has a power factor of 0.8 and a load factor of 0.35. Consider the following tariffs, and determine their annual (consider I year having 365 days) cost of electricity and their corresponding costing per kWh:

b) A maximum demand charge of £25/kW and a running charge of 5 p/kWh.

c) A maximum demand charge of £20/kVA and a running charge of 5 p/kWh

d) A basic maximum demand charge if £25/kW. This increases by a factor of 0.15 for each 0.1 the power factor is worse than 0.9. The running charge is 5 p/kWh.

e) Which tariff system would you recommend to the industrial unit?

Reference no: EM13649318

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