Advantages of P.F. tariff for the power system concern:-
Advantages:- 1) Industrial consumers were trying to run their industry above 0.95lagging power factor (At High P.F.) To get discount in energy bill, so overall P.F. of power system increases. 2) As each industry run at high power factor then overall power factor of power system increases. Due to this 3) Which will automatically beneficial from the economics of power system
Because at high power factor :-
Generation has following advantages: a) Low KVA rating of equipment (alternator) is required. b) Handling capacity of equipment (alternator) increases. c) Cost per unit decreases.
Transmission has following advantages: a) Low KVA rating of equipment (Transformer) is required. b) Handling capacity of equipment (Transformer) increases. c) Cost of conductor decreases. d) Cost of supporting structure decreases. e) Copper losses increases f) Transmission efficiency increases. g) Voltage drop in transmission line decreases. h) Regulation gets improved
Advantages of TOD tariff for the power system concern:-
Advantages: 1. Major industrial consumers are trying to run their maximum load during OFF load period, to get rebate in their energy bill. 2. Major industrial consumers are trying to run their industry at reduced load during PEAK load period to avoid additional charges charged in energy bill. 3. Due to above two reasons, it increases overall load factor as well as diversity factor of power system. 4. As load factor and diversity factor of power system increases so overall cost per unit reduces. 5. Also due to this there will be maximum utilization of power plant & infrastructure. So, TOD tariff helps to avoid the wastage of surplus energy generated during OFF load period. In this way it helps to conserve energy.