The High Cost of Low Power Factor in Queensland

If you are operating a business with a low Power Factor in Queensland, you are more than likely going to be paying much more for the same amount of electricity come 30 June 2015.

It is possible for your business to reduce the cost of these new charges, minimise wasted usage and power outages; and the shortening of equipment lifespan, by assessing your Power Factor and correcting inefficiencies.

If you want a second opinion ask your retailer, they will be able to back up the savings figures and the results.

If your business has a Power Factor of less than .95, taking this assessment can translate into substantial savings.

In simple terms, 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.

E-Energy CEO, Josh Graham, says it’s quite common for businesses to have a power ratio of 0.7 or 0.8 if there is a large number of motors and fluorescent lights, which cause an inductive load. 

“ To date, Power Factor has not been a major concern for Queensland business as Energex has not penalised anyone for having a low Power Factor. However with 380,000 businesses in Energex areas now falling into new billing tariffs being introduced in July,  it is becoming a major priority for us to educate businesses on these up and coming changes, and most importantly how it will affect business efficiencies. We want to show the exact implications in dollar terms then how avoid these charges by correcting your Power Factor”.

Power Factor correction involves the installation of Power Factor Correction equipment or an E-PFC Unit. Our E-PFC Unit works to reduce the total amount of power required in your business and in turn reduces energy demand. 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 efficiency stability.

The E-PFC Unit is housed in a metal cabinet similar to your switchboard and is often installed beside it. The units are as compact as possible to reduce the overall space required to store the equipment. 

Investment in your Power Factor Correction is a sensible business investment. “The typical payback period for E-PFC Power Correction equipment is between one and three years. This cost is offset by energy saving received and can also reduce the likelihood of future energy issues such as power losses and voltage drops”, said Mr Graham.

In order to fully understand your Power Factor and how correcting it will directly benefit your business, call E-Energy today on 1800 046 006 for a free Power Factor Assessment.

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