What is kVA and Why Does It Matter for My Business?

kVA stands for kilovolt-ampere - a unit of apparent power. It represents the total amount of power a business is drawing from the electricity network, including both usable (real) power and wasted (reactive) power.

What’s the difference between kW and kVA?

kW (kilowatt) is the actual power you use to run equipment.

  • kVA includes that plus any inefficiencies in the system (e.g. from motors or HVAC units).
    In simple terms:

kVA = kW ÷ Power Factor
The power factor is a measure of efficiency, typically between 0.8 and 1.0 for most businesses.

Why does kVA matter for businesses?

If your business has a Half-Hourly (HH) meter, your electricity contract will likely include a maximum import capacity (in kVA). This is the upper limit of how much power your site can draw from the grid.

  • If you exceed it: You could face excess capacity charges.

  • If it’s too high: You might be overpaying for capacity you don’t use.

Can I reduce my kVA charges?

Yes. A broker or energy consultant can:

  • Review your usage patterns

  • Recommend a lower agreed capacity if you're over-allocated

  • Suggest equipment upgrades or power factor correction if you're inefficient

Who sets the kVA limit?

Your Distribution Network Operator (DNO) sets the kVA limit based on your request and local grid capacity. It can be changed, but approval is required.