what is kvah in electricity bill

kVAh is a unit of power consumption used by utility or electricity companies in industries where the major load in industrial applications is inductive. It is a billing mechanism that incentivizes or penalizes consumers based on their power factor. In kVAh-based billing, the fixed charges or demand charges are levied on apparent power (kVA), and energy charges are levied on apparent energy (kVAh) . The kVAh billing system is preferred over kWh billing because it takes care of both active power consumption and reactive power consumption. In kWh billing, incentives or penalties are levied on power factor, while in kVAh billing, the consumer is encouraged to draw/inject minimum reactive power. The implementation of kVAh-based billing has been introduced by State Electricity Regulatory Commissions in various states in India.