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Electric Rate Structure in Egypt

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The Structure of Electric Rates

Electric rate structures vary greatly according to supply voltage and type of customer.

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Industrial & Commercial Customers


Industrial & commercial Customers, more than 500 kW cont. power, have three major components to their electric bill: Energy charge Fixed charge Power Factor ( PF ) penalty, if any

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Energy charge: a fixed energy rate per kWh of electrical energy used that month. This cost element covers the utility fuel and O&M costs.
Fixed charge: a fixed rate per maximum kW per month. This cost element covers the utility investment cost. PF penalty: a proportional factor based on the kWh used.

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Key Factors in Electric Energy Use


There is a big difference between a kW and a kWh
A kW is a measure of power being used A kWh is a measure of energy being used

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A Good Analogy for kW and kWh


The automobile dash board provides a nice way to understand the difference between the kW and kWh A kW is like the speed that is measured by the speedometer. A kWh is like the distance that is measured by the odometer
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How is kW Measured
The electric utility does not measure instantaneous values of the kW a facility uses. Instead, they always average the value of the kW over a short period of timeusually 15, 30 or 60 minutes 900, 1,800 or 3,600 seconds. Two common approaches are used to perform this averaging process to get the metered kW value. One is the sliding window averaging method and the other is the synchronous averaging method.
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Sliding Window Averaging Method

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Synchronous Averaging Method--Egypt

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Why Is This All Important


Understanding the definitions of kW and kWh is important to understanding how electric utilities operate and how they use their facilities. A key point is that there is presently no economic way to store large quantities of electric energy. Electricity is truly a JIT production process.

Also, electric use fluctuates during the day, and during the season of the year, and causes utilities additional expenses compared to constant loads.
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Energy cost
Energy charge : 0.1535 LE/kWh Fixed charge : 7.3 LE/kW/month PF penalty: (0.9-PF)*0.5*energy cost

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Bill calculation

A factory consumes 50,000 kWh a month, with a maximum demand of 225 kW and power factor is 0.85, find the cost of the electric bill for this month?

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Monthly cost

Energy cost= (----) LE/kWh* 50,000 kWh = ---X--- LE Fixed charge = (----) LE/kW/month * kWmax = ---Y--- LE PF penalty = (0.9-0.85)*0.5* X = --Z LE Total monthly bill = X+Y+Z LE

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Time of Use rate


(not implemented)

Concept: charge more for power (energy) at expensive (peaking) times for the utility. Charge less during less expensive times.

Least expensive

Peak hrs

Least expensive

Midnight Noon

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E lec t ric it y Rat e S t ruc ut ure E nergy P T/ k Wh 6. 80 11. 34 Demand LE / K W. M 0. 00

Cus t omer

1- V ery High V olt age 2- High V olt age 3- Medium & Low 3-1- More t han 5ooK W 3-2- Les s Than 500 K W 3-3- A gric ult ure 40 t o 50 k Wh 51 To 200 k Wh 201 To 350 k Wh 351 To 650 k Wh 651 To 1000 k Wh More t han 1000 k Wh 50 To 100 k Wh 101 To 250 k Wh 251 To 600 k Wh 601 To 1000 k Wh More t han 1000 k Wh 6- P ower Fac t or P enalt y 0. 7 < P F < 0. 9 Les s Than 0. 7

15. 35 18. 00 7. 00 Hous ing 5. 00 8. 30 11. 00 15. 00 21. 00 25. 00 Commerc ial 18. 00 26. 00 32. 20 41. 00 43. 00

7. 30 0. 00 0. 00

(0. 9 - 0. P F) X 50% X E nergy B ill (0. 9 - 0. 70) X 50% X E nergy B ill + (0. 7 - P F) X energy B ill )

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