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?