Section 7(b) in Orissa Electricity Regulatory Commission (Terms and Conditions for Determination of Tariff) Regulation, 2004
(b)Power Factor and Load Factor Related Tariff - The Commission may provide rebates to the consumers for maintaining high power factors and load factor to promote efficiency of operation and optimum capacity utilisation. To achieve this, the Commission may at a future date consider switching over to KVAh tariff from KWh tariff for consumers having appropriate meters. However, even after switching to KVAh tariff demand charges shall continue to apply. This will take care of incentive for better power factors as well as curb the tendency of not improving the power factor beyond a point determined for penalty, to avail of the rebate for high load factor.
