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Power factor correction made simple
Power factor might sound technical, but it’s simply a measure of how efficiently your business uses electricity.
The beer analogy
Think of your electricity bill like buying a pint of beer. You pay for the entire glass, but if it’s half foam, you’re not getting your money’s worth. Useful power (the beer) runs your equipment. Reactive power (the foam) doesn’t do useful work but still costs you money.
Many businesses have power factors as low as 0.7–0.8, meaning 20–30% of the electricity they pay for is wasted. Electricity suppliers charge you for both. Businesses typically waste £3,000–£10,000+ annually on reactive power charges.
How power flows — and what PFC changes
With a power factor of 0.8, you’re paying for 100% of the power but only getting 80% useful work. Power factor correction eliminates the wasted reactive power.
| Scenario | Without PFC | With PFC | Savings |
|---|---|---|---|
| Power factor | 0.75 | 0.98 | Improved efficiency |
| Reactive power charges | £200–£800/month | £0–£50/month | Up to 95% reduction |
| System capacity | Limited by wasted power | 15–30% more capacity | Avoid upgrade costs |
| Equipment life | Strained, shorter life | Longer lifespan | Reduced maintenance |
| Annual savings | £0 | £3,000–£10,000+ | Direct bottom line impact |
£3,000–£10,000 typical annual savings. Most businesses achieve payback in 12–24 months. Larger facilities with a poor power factor often save £15,000–£30,000+ annually. Figures are estimates; a survey confirms the site.
How power factor correction works
Survey
We analyse your current power usage and identify inefficiencies.
Design
We create a customised solution for your specific needs.
Install
Our certified engineers install the correction system.
Save
You start saving money immediately on your electricity bills.
Real business case studies
Food processing facility
Challenge: 0.72 power factor causing high electricity costs. Solution: automatic capacitor bank with harmonic protection. Results: power factor improved to 0.96, saving £8,200 annually with 14-month payback.
Manufacturing plant
Challenge: 0.68 power factor with £12,000 annual penalty charges. Solution: custom-designed detuned reactor bank for a VFD-heavy environment. Results: power factor improved to 0.98, eliminating penalty charges with 11-month payback.
Office complex
Challenge: 0.79 power factor with limited transformer capacity. Solution: compact wall-mounted correction unit. Results: power factor improved to 0.97, freed 30% capacity, saving £4,500 annually.
Frequently asked questions
What is power factor?
A measure of how efficiently your business uses electricity. Useful power does the work. Reactive power is the wasted share you can still be charged for.
How much can a business save?
Businesses typically waste £3,000–£10,000+ a year on reactive charges. Most sites pay back in 12–24 months. A professional survey is required for an accurate figure — calculator outputs are estimates only.
Will it free capacity?
Yes. Correcting a poor power factor commonly frees 15–30% of system capacity and can avoid a transformer or supply upgrade.
Ready to book?
Westinghouse Electrical Testing · 9 Tetley Road, Birmingham B11 3BU
0121 798 2595 or 07749 701 970 · info@westinghouseelectricaltesting.co.uk
Free power factor analysis. Call 07749 701 970 or email info@westinghouseelectricaltesting.co.uk.