Australian Electricity Bills are Changing and Now your Power Factor Counts!

Many businesses with large electricity consumption have seen changes in the way they are charged for demand.

The unit used to be kilowatt (kW) by most distributors, but now we are seeing changes to kilovolt-amps (kVA) so charges will better reflect the amount of apparent power the distributor needs to supply to each business. Sounds logical.

The fact is that businesses that are being transitioned to these new kVA demands will see an increase in the amount of demand they are charged for, by how much depends on your buildings Power Factor.  The good news is that there is equipment that can improve your Power Factor, this is called Power Factor Correction and will reduce the amount of kVA that you require.

Contact us for free Power Factor Correction assessment for your business.

Keep scrolling to learn more about Power Factor Correction

The Power Factor Beer Theory 

We mostly buy beer by the glass. Imagine you had poor power factor. Every time you bought a beer, the top third of your glass was just froth. By improving your power factor you can decrease the amount of froth in your glass, hence getting more beer for the same price. Wonderful.

power factor correction

Power Factor Correction FAQ

What is the meaning of power factor? 

Power factor is the relationship between the amount of useable power your building requires and the amount of actual powered that is required in order to supply it.  Think of it as inefficiency ratio within your building, the less you lose in the system the less you are required to buy from the distributor.

How do you calculate power factor? 

You can calculate a building’s Power factor by assessing the difference between the kW max demand and the kVA max demand your building has achieved.  You will require at least 12 months interval data to give you an accurate measure.  Of course the simplest way to have your Power factor assessed is by an experience consultant who can easily interpret the data and explain it to you.

Who Supplies Power Factor Correction?

There are several companies that produce Power Factor Correction units, all have their own advantages in certain situations.  Be sure to look for a unit with Harmonic Blocking reactors and heat protection.  Choice Energy can use a range of suppliers to ensure that each site has the correctly designed unit for their particular requirements and of course delivered to a particular budget.

What is Power Factor Correction Unit?

Power Factor Correction units are a bank of capacitors that provide a portion of reactive power to help excite electric motors.  This in turns reduces the amount of power your distributor is required to supply you with and hence reduces your energy bills!  Some units will also have Harmonic Blocking Reactors to protect the capacitors.  Some companies should also consider Voltage Optimisation in some situations to further improve the efficiency and lifespan of your equipment.

Do you have more questions on Power Factor Correction or want a free Power Factor assessment on your business, Contact Us 

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