How does reactive energy impact my SME´s electricity bill?
Producing reactive energy results in the customer paying a financial penalty on their electricity bill. We tell you why this type of energy is produced, how to avoid it and how much you will have to pay if it exceeds 33% of the active energy.
What is reactive energy?
Reactive energy is energy that is produced in electrical installations with industrial machinery, fluorescent lights or buildings with lifts where a transformer or motor is needed to operate certain electrical appliances.
Large enterprises and, to a lesser extent, residential supply points typically produce this kind of energy. It is fed into the grid and measured in kilo volt-ampere hours (kVArh), which causes interference and has negative effects on the installation.
Supply points that produce reactive energy, commonly referred to as “phantom energy”, must face an economical penalty stipulated in Royal Decree 1164/2001 and applied by the electricity distributor in their area.
Differences between active and reactive energy
In the electrical circuit, we can find active and reactive energy. The former is useful and the latter is not, as it cannot be consumed and only interferes with the correct operation of the installation.
| Active Energy | Reactive Energy |
|---|---|
| Measured in kWh | Measured in kVArh |
| Useful energy (can be consumed) | Non-useful energy (cannot be consumed) |
| Electricity bill: consumption term | Electricity bill: excess reactive energy |
| No damage to the installation | Negative consequences for the electrical circuit |
How is reactive power calculated?
Calculating reactive energy is possible thanks to the power factor. It measures the amount of reactive energy over the active energy, i.e. it measures the efficiency of the electricity consumption.
The power factor is the ratio of active energy to apparent energy (sum of active and reactive energy). In other words, it measures the total active energy consumed over the reactive energy.
What is apparent energy? Both active and reactive energy can be found in the electrical network. Amounts of both reactive and active energy combine to form apparent energy. In other words, apparent energy is the total energy used in a given electrical circuit. Active energy + Reactive energy = Apparent energy
The result of the power factor determines the percentage of reactive energy and the possible financial penalty that the customer must pay for excess reactive energy.
*The prices indicated below as financial penalties are established by the Official State Gazette (BOE) and will be applied by the electricity distributors in the national territory.
| Energy factor | % Reactive energy |
|---|---|
| Over 0.95 | Lower than 33% |
| Between 0.95 and 0.80 | Between 34% and 74% |
| Under 0.80 | Over 75% |






