Discussion
Billing on apparent energy in kilovolt ampere hours rather than kilowatt hours
Answer: D
Correct answer: makes a poor power factor costly automatically
Apparent energy in kVAh includes the reactive component, so a consumer at 0.8 power factor is billed for 25 per cent more than one at unity drawing the same real energy. No separate penalty clause is needed - the incentive to correct the power factor is built into the measurement itself, which is why kVAh billing has largely displaced explicit penalties.
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