End-users may want to be aware of the impact on them of poor Power Factor (PF).  The increased power taken due to poor capacitance is recognized as a loss by EPC Distribution Network.

This information is intended to raise awareness in end-users who might benefit from PF correction and to support the continued promotion of increased efficiency in the Distribution Network.

The Issue:

The PF issue associated with end-users’ electricity supply can be likened to leakages within the water industry. Both issues represent inefficiency and waste of a valuable resource.

The EPC Distribution Tariff (DT) Rate Schedule uses the unit of kilo Volt Amps (kVA) for “Billing Demand”.  If the PF is not maintained at unity there will be an increase in the electrical current to supply the electrical equipment.  This will result in increases in overall power consumption, leading to wasted energy. Larger cables and infrastructure may also be required to supply the increased energy demand.
 
Billing demand charges only apply to commercial and industrial end-users with consumption greater than 5,000 kWh per month: i.e. DT rate codes D300, D310 and D410.  These same end-users could benefit from an understanding of the implications of Power Factor correction.

Cost savings could be significant. With Power Factor correction, the kVA drops. For illustration purposes only - the following example shows the potential benefits for an end user site with a DT rate code D310: