Electricity Power Factor, Genesis Automation . This change will give electricity customers a financial incentive to have a high power factor. This page describes the situation and a strategy to minimise capital costs and on-going expenses.
Most businesses buy electricity from a remote generator.
This is reasonable, as the number of kiloWatt.hours used governs how much useful work the electricity can do for the customer. So far, so good. However, getting the electricity from the power station to the customer requires wires and transformers, etc. The size of the wires required depends on the current or flow of electricity which they must be able to carry. And the size of the wires determines their cost.