TSERC New kVAh Billing Rule: What Telangana Industries Must Know to Avoid Hidden Losses

The Telangana State Electricity Regulatory Commission (TGERC) has introduced a new kVAh billing rule that will directly impact industries in Telangana.
If you’re managing power factor (PF) with capacitor banks, your bill may still increase unexpectedly — even if your load stays the same.

In this blog, we’ll explore:

• What changed in the new TSERC kVAh billing rule?
  
  
• Why does the power factor gone leading and excess capacitor bank can now cost you?
  
  
• How to reduce kVAh consumption before the rule takes effect?
  
  
• Why does a  power factor audit matter now?

What changed in Telangana’s kVAh billing?

Earlier, Telangana industries paid for apparent energy (kVAh) calculated as:

kVAh = √(kWh² + (kVARh Lag)²)

This meant only lagging reactive power (from inductive loads like motors) increased your bill. Now, TSERC’s new kVAh billing rule includes both lagging and leading reactive energy:

kVAh = √(kWh² + (kVARh Lag + kVARh Lead)²)

That means:

• If your power factor goes leading (often because of too much capacitor bank or overcompensation)
  
  
• The extra kVARh Lead adds to your kVAh
  
  
• Your bill increases, even if your actual load (kWh) stays the same
  
  

This new billing is being implemented by TGSPDCL and TGNPDCL across Telangana.

Why is leading PF a concern for industries?

To address lagging power factors, many plants install large or automated capacitor banks. In the earlier days, there was no penalty even if the PF took a slight lead.

Now, leading power factor, or PF below 1.0, results in:

• Billed extra kVAh units
• Increased energy charges
• You might not be aware of hidden losses until you receive your electricity bill.

Industries running with excess capacitor banks or incorrect APFC panel settings risk paying for power they don’t even use.

How to reduce kVAh consumption and avoid penalties?

Industries need to:

• Track kVAh Lag and kVAh Lead separately
  
  
• Detect when PF goes leading or beyond 1.0
  
  
• Adjust capacitor banks dynamically
  
  

Manual tracking won’t help. You need:

• Live monitoring
• Smart alerts
• Data-driven correction

This is where Bharat Smart Services helps you.

How Bharat Smart Services helps industries reduce losses?

Our AI-powered energy monitoring solutions help you adapt to the new TSERC kVAh billing and keep your costs under control:

• Real-time tracking of kWh, kVARh Lag & Lead to catch hidden reactive power losses
• Accurate capacitor bank recommendations to keep PF balanced and avoid overcompensation
• Reduction of excess kVAh consumption and demand charges
• Power factor optimization for consistently lower bills

Key solutions include:

• 3-Phase Bijli Auditor: Audits your plant, finds leakages, and with the demand controller keeps your demand within limits
  
  
• Smart PF Correction Guidance: AI-driven alerts when PF goes leading
  
  
• Reactive Power Monitoring: Detects and prevents over-correction
  
  
• Custom TSERC-compliant alerts & reports: Stay audit-ready and compliant

 

Conclusion

The new TSERC kVAh billing rule is a major shift for industries in Telangana — making both lagging and leading reactive power part of your monthly bill. Even with the same load, your costs can rise unexpectedly if your power factor goes leading or you run with an excess capacitor bank.

At Bharat Smart Services, our AI-powered solutions like the Bijli Auditor - 3-phase with demand controller, real-time monitoring, and smart PF correction guidance help you stay compliant, balanced, and efficient.

Don’t wait for the first high bill to reveal hidden losses.
Act now: book your energy audit and power factor health check to identify cost-saving opportunities and keep your kVAh consumption under control.

Contact Us