Discussion
A power factor incentive in a tariff is a rebate given for operating
Answer: A
Correct answer: above a stated power factor
A power factor incentive rebates part of the bill when the consumer operates above a threshold, typically 0.95, and it is the counterpart of the penalty applied below it. Both exist because reactive current loads the network and causes losses without delivering useful energy, so the utility has a real interest in the consumer correcting it.
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