As mentined by Hacksaw and abeltio, VARS do not do useful work and the electric utility usually does not charge the customer for vars unless their power factor drops to a level of 80% or lower. Induction loads (electric motors and similar) use vars. Mathematically it is called imaginary power, but the effect is very real. All equipment used to deliver power (wires, transformers, etc.) must be sized by KVA (which takes into account watts and vars). Like a pipe and water flow, if the pipe has foam in the water, the quantity of water transferred is reduced. The same is true with electricity, only so much kva (within the rating of the equipment) can be transmitted without overheating the equipment. As customers use more vars the utility may charge them a penalty. To improve their power factor (inside and outside their facility), customers and/or utilities will install capacitor banks. If they raise their power factor high enough (usually 95% or greater) the utility will provide discounts on the utility bill. (The billing discount/penalty is only possible if the load is large enough and the right type of metering is installed.)