Incentives and penalties related with power factor tariff: In addition to basic tariff (Maximum Demand Tariff / KVA Maximum Demand Tariff / Load factor tariff) the tariff in which P.F. of industrial consumer is taken into consideration is known as Power Factor Tariff. If the P.F. of consumer is less than P.F. declare by Supply Company (say below 0.9 Lag.) then penalty will be charged in energy bill. If The P.F. of consumer is more than P.F. declare by Supply Company (say above 0.95lag.) then discount will be given in energy bill. As usual consumer has to pay actual energy consumption charges Application :- This type of tariff is applicable to industrial consumer/H.T/ commercial consumers with contract demand above 80 kw/ 100Kva/107 hp consumer.