Could Your Business Benefit from a KVA Review?

What is KVA?

KVA stands for kilovolt-ampere, a unit of apparent power. KVA includes both real power (kw) and reactive power. Reactive power is the energy used to maintain the electric and magnetic fields required by some equipment, like motors and transformers.

In simpler terms, think of KVA as the total energy your equipment draws from the grid, whereas kw is the energy it uses to perform tasks. The difference between the two is due to system inefficiencies, expressed through the power factor (PUE). The closer your power factor is to 1 (or 100%), the more efficient your electrical system is. 

Understanding your KVA usage is important because electricity suppliers often base your charges not just on how much electricity you consume (kWh), but on the maximum capacity you require to be available at any given time.

Who Does This Apply To?

KVA reviews apply to commercial and industrial customers, especially those on half-hourly metering contracts or larger maximum demand tariffs. 

Where Do I Find My KVA On My Electricity Bill?

Finding your KVA information on your electricity bill can be tricky because it's not always labelled clearly. However, most commercial electricity bills will include a section showing Maximum demand (in KVA) or Agreed Supply Capacity (also in KVA)

This information is typically located in the bill's breakdown. If you can't find it, contact your supplier—they're required to provide it upon request.

How Do I Know What KVA I'm Hitting?

To determine the KVA level your business is using, you need access to half-hourly data from your electricity meter. This data shows your peak demand throughout the day and helps you identify when and how often you hit high usage levels.

There are several ways to access this data:

• Through Your Supplier: Most suppliers offer an online portal or data service that allows you to download half-hourly usage reports.
  
• Smart Meter Reports: You can monitor your demand in real time if you have a smart meter or advanced metering system.
  
• Energy Management Systems: An EMS can track demand and kw levels in real time for larger sites, alerting you when you're nearing or exceeding your capacity threshold.
  
• Consulting with Purely Energy: We can help analyse your historical data to determine peak demand periods and compare them to your agreed capacity.

If your recorded maximum demand is regularly below your agreed capacity, you could be paying for more capacity than you need. If your maximum demand exceeds your agreed capacity, you may incur excess capacity charges, often charged at a premium rate.

How to Reduce Your KVA

Reducing your KVA, or reducing the capacity you need to be available, can lead to massive savings for your business.

Here are a few changes your business can make to reduce your KVA:

Improve Power Factor

If your power factor is low, you're using electricity inefficiently. By installing power factor correction equipment (such as capacitors), you can reduce the amount of reactive power drawn from the grid, which lowers your overall KVA demand. This is one of the most effective and common strategies used in industrial settings.

Stagger Equipment Start-Up

Starting several large machines or HVAC systems simultaneously causes a sharp spike in demand. Implementing soft start systems or staggering start times helps to reduce peak load and smooth out energy usage.

Shift Load to Off-Peak Hours

Operating energy-intensive equipment during off-peak periods can avoid adding to your maximum demand during peak times. Some tariffs reward you for shifting demand outside of peak hours.

Install Energy-Efficient Equipment

Modern equipment often consumes less power and operates more efficiently. Replacing outdated motors, lighting, or heating systems can lower kw and KVA requirements.

Undertake a KVA Review

The most direct way to reduce your supply capacity is to request a formal KVA review from your supplier. You can reduce your contract level if your historical data supports a lower agreed capacity. This lowers your standing charges but if your demand spikes above the new limit, you'll face charges again. You can find out how energy efficient your business is by using our PUE calculator, which we can also undertake on your behalf.

Benefits of a KVA Review

A KVA review is a focused analysis of your business's electricity usage patterns, especially peak demand periods. It involves comparing your maximum demand to your agreed-upon supply capacity and identifying opportunities to reduce costs.

Financial Efficiency: You could be paying for capacity you don't use. 

Risk Mitigation: If you've changed operations (for example, shut down production lines or automated processes), your energy demand may have dropped, and your current contract may no longer be appropriate.

Operational Insight: Reviewing your KVA levels gives you a clearer understanding of your site's energy profile and how to manage it better.

Sustainability: Reducing wasteful electricity use contributes to your business' carbon reduction goals and overall energy efficiency strategy.

Many businesses unknowingly pay for more electricity capacity than they need, or risk costly overage charges by underestimating their needs. A KVA review is a simple but powerful tool that can help you align your electricity contract with actual usage, reduce waste, and uncover opportunities for efficiency and savings.

How Can Purely Energy Help?

If you haven't reviewed your KVA in over a year or your operations have changed recently, now is the perfect time to act. Purely Energy can assist you in undertaking an investigation with your supplier and guide you through the KVA reduction process.

If you have questions about KVA reviews or want help lowering energy costs, contact us at 0161 521 3400 or Info@purelyenergy.co.uk. Alternatively, you can get a quick quote.

Megan Glover of Purely Energy wrote this article. If you have any suggestions or questions, please get in touch with us.