Electricity Board Charging

VAR power is stored briefly and then returned. Except for losses, it is not consumed.

Nicely stated.

Wires, generators and transformers have be larger for lower power factor. It is common for some users, particularly industrial, to pay a penalty for their VAR 'use', metered separately from Watts. That produces an incentive to lower the VAR use by doing power factor correction.

Also common to charge for the peak power ("demand") used since high peaks also require larger wires, generators, transformers. This provides an incentive for industries to level out their energy use eliminating peaks.

Right. I'd like to see a peak VA charge. This would encourage load leveling and power factor correction. But metering technology being what it is, it won't pay to upgrade it except for major consumers.

With electronic meters couldn't they add all kinds of features to a single meter? Watts, VAR, demand, harmonic penalty and time of day rates in a single meter on your house? All reported by a radio link. My kid's meter was just changed from mechanical to digital/electronic (both with radio link).

Would seem like the common Watts, VAR and demand could at least be combined in a single meter for new installations.

As Paul pointed out, the problem is not technological but economic. The benefits of all these measurements for residential customers would not cover the costs of upgrading the instrumentation.

Besides, utilities don't need to know each consumer's load characteristics. They can set rates based on the entire consumer class.

Chuck