The document discusses energy metering and billing charges. It defines three components of energy - apparent, active, and reactive. Apparent energy is measured in volt-ampere hours, active energy in watt-hours, and reactive energy in volt-ampere reactive hours. Power factor and maximum demand are also defined. The billing charges include active energy, maximum demand, reactive energy penalty or reward, and service fees. Declining block tariffs result in lower rates for higher consumption. Reactive energy penalties are calculated using a k-factor formula based on power factor.