How_to_Calculate_Power_Factor

1. www.onealphagroup.com

2. • Dato’ Ir. Mokkam Singh Bhullar graduated
with a Bachelor of Engineering (Hons.) from
the University of Malaya.
• Joined the National Electricity Board in June
1964.
• He was appointed the Consumer Engineer for
TNB Johor Bahru.
• Then, he was promoted to District Engineer
and subsequently Senior District Manager,
before going into private practice.
• Founded Consultancy Firms in 1979.
About Our Founder

3. About the Trainer
• Ir. Nash Bhullar is graduate of University of
Leicester, UK, where he obtained a First
Class Honors Degree in Electrical Engineering
in1992. He commenced work with Alpha
Electrical Services Sdn. Bhd. In September
1992.
• In June 1996, he pursued a Master in Science
from the City University, London.
• He is a certified Competent electrical
Engineer by the Energy Commission as well
as a Professional Engineer certified by the
Board of Engineers, Malaysia.
• In 2012, Ir. Nash Bhullar was recognized as a registered electrical Energy Manager by
the Energy Commission.
• Ir. Nash is also passionate about nature and has climbed Mount Kinabalu. He has also
done a parachute jump from 2,200 feet.

4. Our Services Today
• Electrical Inspection/Safety Audit
• Suruhanjaya Tenaga – Registration
• Electrical Servicing and calibration
• Training & Consultancy Services
• TNB Tariff Optimization

5. TNB’s Power Factor Penalty
What is Power Factor?
Power Factor is an index used to compute
the efficiency level of electricity usage. The
index is measured from 0 to 1. A higher index
shows efficient usage of electricity and vice
versa. Low power factor shortens the lifespan of
electrical appliances and causes power system
losses to TNB.

6. How to calculate Power Factor?
•
OR

7. How to calculate Power Factor?
Method 2
KVAh
KWh
KVARh

8. Example to calculate Power Factor
Low Voltage Tariff D
Step 1
Get the kVARh & kWh

9. Example to calculate Power Factor
Low Voltage Tariff D
•
Good
(Must be > 0.85 to avoid TNB penalty)

10. Example to calculate Power Factor
Medium Voltage Tariff C1
Step 1
Get the kVARh & kWh

11. Example to calculate Power Factor
Medium Voltage Tariff C1
•
Good
(Must be > 0.85 to avoid TNB penalty)

12. Sample of TNB’s Power Factor Penalty
Low power factor

13. Power factor surcharge
Power factor surcharge for customers with
electricity supply below 132 kV is calculated as
follows:-
1.5% surcharge of the current bill – for every 0.01
less than 0.85 power factor.
3% surcharge of the current bill – for every 0.01
less than 0.75 power factor.

14. TNB’s Power Factor Penalty
Example 1:-
Current bill: RM2,000
Power Factor= 0.80
Surcharge
= [(0.85 – 0.80) / 0.01] x
1.5% x RM2,000
= RM150
Example 2:-
Current bill: RM2,000
Power Factor= 0.75
Surcharge
= [(0.85 – 0.75) / 0.01] x
1.5% x RM2,000
= RM300

15. Connected Load Charge
(CLC)
Definition
Connected Load Charge is the penalty charge
made to TNB when there is a significant load
burden reduction from the original burden
declared by a customer. The charge was
introduced to avoid cases of underutilized load
burden where customers initially requested for
high maximum demand.

16. CLC Some Definition
1. Total Connected Load(TCL):
Is the addition of all the load.
2. Declared Maximum Demand(DMD):
Is the amount submitted by the Electrical
Consultant to TNB.
3. Diversity Factor(DF):
Is the percentage of usage at one time.
So, DMD = TCL x DF

17. Connected Load Charge
(CLC)
Example:
TCL = 1000kW
DF = 80%
MD = 800kW
Reference MD = 75% x MD
RMD = 750kW

18. Connected Load Charge
(CLC)
Year
Reference Maximum
Demand (RMD)
CLC will be charge
if MD declared less
75% from RMD
1 Zero Penalty
2 Must achieve 50% x RMD 50% x RMD
3 Must achieve 75% x RMD 75% x RMD
4,5 & 6 Must achieve 100% x RMD 75% x RMD
TNB can impose penalty for CLC for 60 months ONLY.

19. CLC Case Study
FACTORY IN ULU CHOH
MD = 1200kW
RMD = 900kW
Year
Reference
Maximum
Demand
(RMD)
Target
MD must
achieve
Actual
Monthly
MD
Actual
No. of KW
short
CLC
charge
based on
RM8.50
per kW
short fall
1 900 kW 0 300kW 0 0
2 900 kW 450kW 420kW 30kW RM 255
3 900 kW 675kW 610kW 65kW RM 553

20. What is the OPTR?
Definition
The Off Peak Tariff Rider (OPTR) scheme is offered to all
medium voltage commercial and industrial customers who
are currently not enjoying any off-peak usage tariff rates.
• Medium Voltage General Commercial Tariff C1
• Medium Voltage General Industrial Tariff E1
• Medium Voltage Special Industrial Tariff E1s
Customers enrolled in the OPTR scheme will enjoy a 20%
discount on electricity usage during off-peak hours (10.00
p.m. to 8.00 a.m.) every day.

21. What is the OPTR?
How to qualify?
You are eligible to enroll in the OPTR scheme if:
• You are an existing TNB customer under the C1,
E1, or E1s tariff.
• Your have been receiving electricity supply from
TNB for at least one (1) month.
• Your latest Load Factor is higher than the average
Load Factor over six (6) months prior to your
application.

22. What is Load Factor?
The load factor is defined as the average load
divided by the peak load in a specified time
period. It can be derived from the load profile of
the specific device or system of devices.

23. Load factor Calculation
Step 1 – Get the Consumption Peak/Off-
Peak(kWh), Maximum Demand(MD)
and bill period from TNB bill.
Step 2 – Use this formula:

24. TNB Bill TNB Load Factor Actual Load Factor Saving Achieved
RM 180,581.78 0.58 0.59 RM 10,293.01
Case Study OPTR 1: Client in Batu Pahat
OPTR Start

25. Case Study OPTR 2: Client in Senai
TNB Bill TNB Load Factor Actual Load Factor Saving Achieved
RM 86,008.40 0.48 0.50 RM 3,213.45
RM 84,919.64 0.48 0.50 RM 2,979.16
RM 83,961.85 0.48 0.53 RM 3,006.42

26. Commercial Definition
Commercial Consumer
Defined as (but not limited to) a consumer occupying or
operating:
• Office block
• Hotel
• Service apartment
• Boarding house
• Retail complex
• Shop-house
• Car park
• Restaurant
• Estate, plantation or farm (except
those categories defined in the Specific Agriculture
Tariff)
• Port
• Airport
• Railway installation
• Toll plaza
• Street lightings at tolled highway
including its bridges and tunnels
• Telecommunications installation
• Broadcasting installation
• Entertainment / recreation / sports o
• Etc.

27. Industrial Definition
Industrial
Means a consumer engaging in manufacturing of goods
and products.
Manufacturing means the conversion of raw material or
components to finished product such as the making,
altering, blending, ornamenting, finishing or otherwise
treating or adapting any article with a view to use, sell,
transport, deliver or dispose; and includes the assembly
of parts and food processing but shall not include any
activity normally associated with the retail or wholesale
trade.

28. Comparison of Tariff D vs Tariff B
(Commercial vs Industrial)
Tariff Category Rate
Tariff B (Commercial) 50.9 sen/kWh
Tariff D (Industrial) 44.1 sen/kWh
Percent of Saving 13.36%

29. Comparison of Commercial Tariff ‘B’
vs Industrial Tariff ‘D’
Rate difference=RM 50.90 sen/KWh – RM 44.10 sen/KWh
= 6.80 sen/KWh (Tariff B Tariff D)
Example:
Say commercial business consumer 7200 units of kWh
per month.
If change to industrial = RM 3175.00
Thus, we can save RM 500.00/month
13.4% Cheaper

30. Comparison of Tariff C1 vs Tariff C2
(Commercial)
• C1 – Flat Rate Tariff
• C2 – Peak & Off-Peak Tariff
• *Peak=14 hours from (8.00 a.m – 10.00 p.m)
• *Off-Peak=10 hours from (10.00 p.m – 8.00 a.m)
* The Maximum Demand(MD) charge for C1 is
higher 50% much cheaper, however the average
kWh charge for C2 is 19.3% cheaper.

31. Comparison of Tariff C1 vs Tariff C2
(Commercial)
Tariff Category
Rate
MD kWh
Tariff C1 30.3 RM/KW 36.5 sen/kWh
Tariff C2 45.1 RM/KW 29.45sen/kWh
Percent of Saving - 19.30%
Percent of Increases 50.00% -

32. Example of Tariff C1 TNB bill

33. Example of Tariff C2 TNB bill

34. Difference between E1 & E2 Tariff
E1 – Flat rate tariff
E2 – Peak & Off-peak tariff
*Note: E1 – Maximum Demand(MD) is
measured over 24 hours.
E2 – Maximum Demand(MD) is
measured over 14 hours peak only.
E3 – Only for High Voltage Peak/Off-peak
Industrial tariff.

35. Medium Voltage Tariff
E1 & E2
Tariff Category
Rate
MD kWh
Tariff E1 29.6 RM/KW 36.5 sen/kWh
Tariff E2 37.00 RM/KW 28.7 sen/kWh
Percent of Saving - 21.40%
Percent of Increases 25.00% -

36. Example of Tariff E1 TNB bill

37. Example of Tariff E2 TNB bill

38. High Voltage Tariff E3
(132kV & Higher)
Tariff Category
Rate
MD kWh
Tariff E3 35.50 RM/KW 26.95 sen/kWh

39. Mining Industry Tariff
Definition
Mining industry is the extraction of
valuable minerals or other geological
materials from the earth from an ore
body, lode, vein, seam, or reef, which forms
the mineralized package of economic interest
to the miner.

40. Discount Tariff F – Mining Tariff
Tariff Category
Rate
MD kWh
Tariff F – Low Voltage Mining
Tariff
- 38.10 RM/kW
Tariff F1 – Medium Voltage
General Mining Tariff
21.10 RM/kW 31.30 sen/kWh
Tariff F2 - Medium Voltage
Peak/Off-Peak Mining Tariff
29.80 RM/kW 24.25 sen/kWh

41. Agriculture Tariff
• Agriculture is the cultivation
of animals, plants, fungi, and other life forms
for food, fiber, biofuel, medicinal and other
products used to sustain and enhance human
life.
• Agriculture was the key development in the rise
of sedentary human civilization, whereby farming
of domesticated species created
food surpluses that nurtured the development
of civilization.

42. Discount Tariff H – Agriculture Tariff
Tariff Category
Rate
MD kWh
Tariff H – Low Voltage
Specific Agriculture Tariff
- 47.20 sen/kWh
Tariff H1 – Medium Voltage
General Specific Agriculture
Tariff
30.30 RM/kW 35.10 sen/kWh
Tariff H2 - Medium Voltage
Peak/Off-Peak Specific
Agriculture Tariff
40.80 RM/kW 29.45 sen/kWh

43. Special Tariff
Definition
Eligible industrial consumers can apply for the
Special Industrial Tariff (SIT) to enjoy lower
tariff.

44. Special Tariff
Who can qualify?
• Industrial consumers under tariff categories D, E1, E2
and E3 who have been in business for at least a year.
• Industrial consumers whose total annual electricity cost
is 5% or more of the total annual cost of its operations
• The computation of the 5% threshold shall be as
follows:
Total annual electricity bill (energy and maximum demand charges) x 100%
Total company's annual audited cost of its operations

45. Special Tariff
Total company annual audited cost of its operations
includes but is not limited to:
• Operating costs (which include cost of goods sold,
cost of production, depreciation, exceptional
items, etc.)
• Foreign exchange
• Share of results of associates (if applicable)
• Finance cost
• Extraordinary items

46. Special Tariff
Required Documents
• The original Appendix 1 form, duly audited,
signed and stamped by external auditors of the
company
• Latest audited financial report, duly signed and
stamped by a Commissioner of Oaths
• Copy of electricity bill for 12 months (by financial
year)

47. Comparison of Tariff D vs Tariff Ds
(for consumers who qualify only)
(Industrial)
Tariff Category Rate
Tariff D 44.1 sen/kWh
Tariff Ds 42.70 sen/kWh
Percent of Saving 3.17%

48. Medium Voltage Tariff
E1s & E1s
(for consumers who qualify only)
Tariff Category
Rate
MD kWh
Tariff E1 29.6 RM/KW 36.5 sen/kWh
Tariff E1s 23.7 RM/KW 33.6 sen/kWh
Percent of Saving 20.00% 8.00%

49. Medium Voltage Tariff
E2 & E2s
(for consumers who qualify only)
Tariff Category
Rate
MD kWh
Tariff E2 37.00 RM/KW 28.70 sen/kWh
Tariff E2s 32.90 RM/KW 26.35 sen/kWh
Percent of Saving 11.00% 8.20%

50. High Voltage Tariff E3s (for consumers
who qualify only)
(132kV & Higher)
Tariff Category
Rate
MD kWh
Tariff E3s 29.00 RM/KW 24.60 sen/kWh

51. What is Sunday Tariff Rider?
The Sunday Tariff Rider (STR) scheme is offered to all medium- or
high-voltage industrial customers. These are:
• Medium Voltage General Industrial Tariff E1
• Medium Voltage General Special Industrial Tariff E1s
• Medium Voltage Peak/Off-Peak Industrial Tariff E2
• Medium Voltage Peak/Off-Peak Special Industrial Tariff E2s
• High Voltage Peak/Off-Peak Industrial Tariff E3
• High Voltage Peak/Off-Peak Special Industrial Tariff E3s
Customers enrolled in the STR scheme will still pay the same rates on
electricity usage as their current tariff; however Maximum Demand
charges are not applied to any electricity usage on Sundays.

52. Subsidy Rationalisation Programme
Effective from 1st January 2014, the new
electricity tariff will be put in place in line
with the Government’s aspiration towards
gradually phasing out energy subsidies
through the Subsidy Rationalisation
Programme.

53. Incentive Based Regulation (IBR)
• The new electricity tariff setting methodology
is based on the economic regulatory
framework called the Incentive Based
Regulation (IBR).
• Introduced by the Suruhanjaya Tenaga to
enhance the operational efficiency and
transparency towards maintaining a reliable
and sustainable electricity supply.

54. Imbalance Cost Pass Through
(ICPT) Mechanism
• In parallel with the implementation of IBR, the
Government will also introduce an Imbalance
Cost Pass Through (ICPT) mechanism for the
power sector.
• Under the ICPT, the fuel cost will be reviewed
every six (6) months and any changes (upward or
downward) in the fuel cost due to the fluctuation
in the fuel prices (namely gas, LNG, coal and
alternative fuel) will be passed through in the
end-user tariff.

55. Imbalance Cost Pass Through
(ICPT) Mechanism
• It is a charge that is applicable for every kWh of
electricity consumed.
• ICPT Charge is a variable component in the
electricity bill where the ICPT Rate is charged
based on your consumption of electricity on a
monthly basis.
• The ICPT has been implemented and has
been imposed since 1 March 2015 – 31 Dec
2015 . Currently the ICPT is a rebate of RM 0.0225
sen/kWh and is reflected monthly since 1 March
2015.

56. Imbalance Cost Pass Through
(ICPT) Mechanism
• Any reduction in monthly consumption of
electricity will help in bringing down the
amount in this ICPT charge.
• The ICPT is straight “pass-through” charge and
its calculation is the number of kWh
consumed in a month multiplies by the ICPT
Rate (in sen/kWh). The ICPT Charge will then
be added to or subtracted from your current
bill amount.

57. “The Future”
• Energy management to set the base figure for the Special tariff from 1st
January 2016.
• Now, Special Tariff(SIT) only for those who achieve the 5% can qualify and
applications will be required to sign a new electricity contract within 7
days after receiving a notification letter from TNB to effect the special
industrial tariff.
• SIT eligibility is not automatic and must be applied on a yearly basis.
• SIT applications must be submitted within 5 months from the company’s
financial year-end.
• After December 2015, only those who show improving efficiency will
qualify.

58. One Alpha Philosophy
“A customer is the most important visitor on
our premises. He is not dependent on us. We
are dependent on him. He is not an
interruption in our work – he is the purpose
of it. We are not doing him a favor by serving
him. He is doing us a favor by giving us the
opportunity to serve him.”
~Mahatma Ghandi

59. Contact Details
Email : nash@onealpha.com.my
Website : www.onealphagroup.com