The other smart meter hazard

Of the differences between Analog Electricity Meters and Smart Meters, one is that Analog Meters cannot measure Power Factor. Smart Meters can. 

You cannot get billed for something that retail electricity suppliers cannot measure - YET.

Smart Meter

Analog Electricity Meter

Example of what a Power Factor Correction Calculator shows -

Power Factor Correction

Input Data

Connected Load: kW

Current power factor: 

Desired power factor: 

Results

Original KVA:160 kVA

New KVA:125 kVA

Required Compensation:71 kVAr

Example of an ACCC  prosecution in the Federal Court that makes you wonder why you could ever possibly need a Power Factor Correction Calculator -

Federal Court declares consumers misled over Power Saver device

The ACCC's case centred on the fact that the Power Saver, a power factor correction [device] [emphasis added] , does not actually reduce the real electrical power [emphasis added]  consumed by a domestic user. ...
The court declared ...that Auscha contravened sections 52 and 53(c) of the Act, by representing in promotional material to customers that:

• by using the Power Saver, domestic consumers could save up to 24% on their electrical power consumption
• by using the Power Saver and saving on their electrical power consumption, domestic consumers would thereby save money, 

...

When in fact:

• the Power Saver was not capable of reducing the amount of electrical power consumed by domestic consumers as measured by retail electricity suppliers [emphasis added] , and therefore domestic consumers could not save up to 24% on their electrical power consumption by using the Power Saver
• use of the Power Saver could not lead to domestic consumers saving on their electrical power consumption as measured by retail electricity suppliers  [emphasis added] , and therefore domestic consumers could not save money by using the Power Saver,

....

Of the differences between Analog Electricity Meters and Smart Meters, one is that Analog Meters cannot measure Power Factor. Smart Meters can. 

What the above Federal Court decision really means is: "You cannot get billed for something that retail electricity suppliers cannot measure - yet."

That is changing. Large electricity consumers who have had smart meters for some time receive MONTHLY electricity accounts with items that may look like this:

Network Charges	Quantity	Rate	Total
DUOS for Peak Capacity	160.000 kVA	10.2300 $/kVA	$1,636.80

DUOS: refers to Distribution Use Of System charges and relates to the use of the electricity distribution network.

Some electricity retailers do not show customer's their power factor

The new-found ability of retailers to measure power factor creates the opportunity to make these charges. Of more importance to small business owners is that these electricity network charges are rising very rapidly.

For instance, the monthly rate has increased from $6.04 to $10.23 per kVA on 1 July 2012. For a customer being billed for a peak of 160 kVA peak demand in a half-hour sometime in the last 12 months, this increases the monthly charge by $670.40 from $966.40 to $1,636.80. This is an INCREASE of more than $8,000 a year!

This 70 percent increase has escaped the notice of all political parties, though it is similar in impact to the carbon price on small businesses hit with this sky-rocketing electricity network access expense.

In the case of the carbon price the Federal Government has at least made some effort to provide advice on measures that may help reduce liability. More obviously can be done and needs to be done in this regard.

Charges of $1,500 and more every month are made without these electricity retailers informing customers of the Power Factor measure on which the charge is based.

Though businesses may be able to reduce this expense that they are being hit with - now that electricity retailers have smart meters able to record power factor - many customers' electricity accounts do not even show them the power factor of their electricity use.

This is vital information to manage a business's costs. For instance if a business owner is informed that they have a power factor of 0.7 - 0.8 they can examine the business-case for installing a Power Factor Correction device to raise the power factor to between 0.95 - 0.98. A business owner who can increase their power factor from 0.75 to 0.96 could cut a peak kVA network demand from 160 kVA to 125 kVA. This would slash their electricity bill by 35 kVA x $10.23 per month. This is a saving of $385.05 each month and $4,296.60 a year.

Extract from Ausgrid's Network Pricing Proposal for the Financial Year ending June 2012

Table 10: Proposed Network Tariffs – FY12 – Medium Businesses

Charging Parameter	Actual FY11	Proposed FY12	% Variation
Time Of Use Tariff 160MWh to 750 MWh pa (EA305)
Fixed Charges (C/day)	187.8872	350.0000	86.28%
Peak (C/kWh)	9.1752	8.8538	-3.50%
Shoulder (C/kWh)	6.7705	7.1538	5.66%
Off-peak (C/kWh)	2.4796	3.3541	35.26%
Capacity (c/kVA/day)	14.5054	27.0000	86.14%