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Power Factor Correction/Optimisation


Voltage Power Optimisation

Useful where the measured consumption is less than the energy being delivered and charged for by the Energy Retailers (210/240 volts). Many users, both Commercial and Domestic, are unaware of this lost or wasted energy and the ongoing rising cost. VPO equipment delivers a measured result and reduces energy costs.    

Power Factor Correction

This can be utilised where Businesses are being charged a Demand or Fixed Rate Infrastructure Tariff. This equipment can have the effect of reducing the provisioning requirements needed to meet the energy needs of a business. Reducing requirements usually leads to a reduction in fixed rate infrastructure charges. PFC equipment can also assist where a demand expansion is anticipated such as a new business initiative or equipment install. Expansive transformer upgrade can be avoided and compliments the ongoing savings achieved.


You may be paying more than you need to for your electricity. How can you fix it?

What is power factor?

Power Factor is a measure of how efficiently incoming power is utilized in your business and is defined as the ratio of real power to apparent power.

Real, or ‘working’ power, is power that is put to productive use in your business, with obvious effect in situations like running machinery and the lighting. Apparent power is the total power supplied by the distribution system to your business. These numbers often do not match up; the apparent power reading is most likely higher when measured, effectively pointing out that energy is being wasted in the location. Wasted or not, it is billed to you.

Power Factor is expressed as a value between zero and one. Let’s look at the figures:

If the ratio between real power and apparent power – the Power Factor - is 1, then all of the power supplied is being used for productive work. However, a Power Factor of 0.7 for example, indicates that only 70% of power supplied to your business is being used efficiently and 30% is being squandered. The wasted power is known as reactive (non-working) power.

So, what uses reactive power?

Reactive power is most often used by inductive loads such as transformers, electric motors, fluorescent lighting and air conditioning motors, which can make up a large proportion of the power consumed in some businesses. The reactive (non-working) power increases the amount of apparent (total) power your business draws through the distribution system and has a negative impact on your Power Factor reading ultimately meaning much higher costs.

What is Power Factor Correction?

Low Power Factor can be improved by installing Power Factor Correction equipment. These are capacitors that work as silent reactive power ‘generators’, reducing the amount of apparent power required. As a result, electricity demand decreases. The capacitors are housed in a metal cabinet similar to the one that houses your electrical switchboard and are often located beside it for easy access.

How can Power Factor Correction help you?

An electricity load with a low Power Factor draws more current than necessary and can put excessive strain on the electricity distribution network. To compensate for this, network providers must spend more on transmission lines, transformers and other equipment to handle peak demand and maintain power reliability to customers. By increasing your Power Factor, you can reduce your electricity bills through lower monthly demand and capacity charges.

Typical payback periods for Power Factor Correction are between one and three years. Given the life expectancy of Power Factor Correction equipment and the potential savings, it can be a very worthwhile investment saving you a packet in the long-run.

In the same way that low Power Factor can wreak havoc on the electrical distribution network, it can also reduce your own electrical system’s distribution capacity. Low Power Factor may cause power losses and voltage drops, which can contribute to overheating and failure of motors and other equipment, not to mention a strain on business operations. If your electrical system is near capacity, installation of Power Factor Correction equipment may help avoid costly infrastructure upgrades by lowering the existing electrical demand on your system and improving productivity and stability.

Ekonomix Energy Solutions offer the most comprehensive solution in automatic Power Factor Correction for industrial and commercial applications. These units are easy to install, operate and service while ensuring optimum energy efficiency and safety.

Call us now on 1300 751 752 and start saving.

Does your Power Factor need correcting?

Power Factor is a measure of how effectively incoming power is used in your business and is defined as the ratio of real (working) power to apparent (total) power. Real power is power that is put to productive use in your business and apparent power is the total power supplied by the distribution system to your business.

Power Factor is expressed as a value between zero and one. If the ratio between real power and apparent power – the Power Factor – is 1, then all of the power supplied is being used for productive work. However, a Power Factor of 0.7, for example, indicates that only 70% of power supplied to your business is being used effectively and 30% is being wasted. The wasted power is known as reactive (non-working) power. Reactive power is most often used by inductive loads such as transformers, electric motors, fluorescent lighting and air conditioning motors, which can make up a large proportion of the power consumed in some businesses. The reactive (non-working) power increases the amount of apparent (total) power your business draws through the distribution system and has a negative impact on your Power Factor.

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