Regarding the modern power smart grid, distribution consumers and prosumers are highly concerned about power quality (PQ). In fact, they would prefer to pay higher prices for a reliable and good quality power supply. Unfortunately, utility operators still aim for reliability alone, ignoring the quality of supply voltage and current. There are no clear guidelines for monitoring, penalizing, or implementing PQ-based tariff schemes in LV distribution systems. In addition, the implementation of a PQ-based tariff requires a real-time measuring mechanism at the user end, which is very expensive and difficult to understand for a domestic consumer. This paper presents a novel, low-cost, efficient, and user-friendly smart PQ meter to overcome these issues and limitations. It is essentially a PQ analyzer with energy metering functionality, which implements a novel PQ-based tariff scheme that penalizes consumers violating the PQ limits and provides incentives for a good PQ profile. It measures as many as 28 parameters and keeps track of the PQ for both the consumer and the grid in real-time. This paper demonstrates the specifications, design, and testing of the meter and proves the validity of the concept by practical implementation. The meter is practical, feasible, and economical for implementing PQ-based tariff schemes in LV distribution systems or smart grids.
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