Power Factor and the Demand Tariff

Improve your Power Factor and save

Understanding Power Factor

Power Factor is a figure between zero and one that shows how efficient your business' power consumption is.

It shows us:

  • How much power is used to actually achieve results like heat, light or motion - this is called 'Real Power'.
  • How much power is used to maintain the electromagnetic fields of equipment such as air conditioners, motors, air compressors and welders - this is called 'Reactive Power'.

Real Power and Reactive Power together make up Apparent Power which is measured in kilovolt- amperes (KVA).

If you imagine Apparent Power as being a glass of beer, the Real Power is the liquid and the Reactive Power is the head. Power Factor measures the ratio of Real Power to Apparent Power (or the proportion of liquid in the glass). The higher the Power Factor (or the more liquid) the better.

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How to improve your Power Factor

The simplest way to improve the Power Factor is to install a Power Factor correction capacitor. Basically, this will provide you with your own Reactive Power and reduce the total amount of power you draw from Power and Water's supply.

Benefits of improving your power factor

Installing a Power Factor correction capacitor has many benefits for you as a customer, for Power and Water as a supplier and for the environment.

They include:

  • Reducing your businesses kVA demand tariff, leading to reduced customer costs
  • Improving the efficiency of the electricity system, leading to savings on future capital works investments
  • Prolonging the life of motorised equipment
  • Protecting the environment by reducing emissions and making better use of the power we supply you
  • Improving voltage to and within your premises.

Power Correction cost

The cost of installing a Power Factor correction capacitor varies depending on the individual needs of each site. If your business uses a kVA demand tariff, you can recover the installation cost by lowering your demand (kVA).

Find out more about Power Factor

Contact Power and Water on 1800 245 092. Do the Customer Contact Centre have information to provide to customers? Have they got talking notes.

For commercial customers please contact your Corporate Account Manager. How?, and should this say Major Customers?