Power factor is the measure of how efficiently your business uses its electricity supply. It’s the ratio of real power (kW) to apparent power (kVA).
A low power factor means your business is not using its electricity supply as efficiently as it could be. You may be paying a higher capacity charge than is necessary and thereby paying more for your electricity.
It also means you may not be meeting your user obligations under the Service and Installation Rules of NSW (section 1.10.11) which states it is mandatory for electricity users to maintain a power factor of at least 90% (or a factor of 0.9).
There are many business benefits associated with correcting power factor. Some of these benefits are listed below.
We encourage customers to have their power factor correction assessed by their electrical service provider. Visit how to get started where you will find guidelines to help you on your way.