Question:

Which tariff is most suitable for industrial consumers with a significant reactive power load?

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KVA maximum demand tariff penalizes poor power factor and is suitable for industrial consumers with reactive loads.
Updated On: May 27, 2026
  • Flat rate tariff
  • Block rate tariff
  • Maximum demand tariff
  • KVA maximum demand tariff
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The Correct Option is D

Solution and Explanation

Concept: Industrial consumers often have inductive loads which draw reactive power. This reduces power factor.

Step 1:
KW demand considers only active power.

Step 2:
KVA demand considers both active and reactive power.

Step 3:
If the reactive power load is high, the KVA demand increases.

Step 4:
Therefore, KVA maximum demand tariff encourages consumers to improve power factor. Hence, the most suitable tariff is: \[ \boxed{\text{KVA maximum demand tariff}} \]
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