Power Factor vs. Consumption Invoice

[jhonwyn73]

Hello Everyone,

I have a query regarding the monthly invoice vs. power factor for industrial complex. The electricity provider accepted a power factor of 0.85 lagging at the connection point. The charging tariff will be for watt only, and at a fixed rate regardless of peak time… etc.

The question I have, what saving will be to the monthly consumption invoice if complex operated at 0.85 lagging instead of 0.95?
Fyi, plant loads are mostly induction motors + EAF's

Thanks in advance for your support.

 

[waross]

No savings. At 95% PF compared to 85% there would be slightly less I²R losses than at 85% due to less line current for the same Watts consumption.
As for your EAF loads, I need more information before commenting on the impact of the Energy Availability Factor on your power invoice.

Bill
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Jimmy Carter