What is Power Factor Correction?

Understanding Active, Reactive & Total Current—and why improving your power factor saves you money.

Basics of Electrical Current

All electric motors, transformers, ballasts, and similar devices contain copper windings—they’re inductive loads that require two kinds of current to operate:

This means the Total Current you read on an ammeter combines both Active and Reactive currents.

What Is Power Factor?

Power Factor is the ratio of Active Current to Total Current. A higher power factor indicates more efficient use of the electricity you pay for.

Diagram showing active vs reactive current

Why Improve a Low Power Factor?

When power factor is low, utilities must supply extra Reactive Current along with your Active Current. That drives up:

By boosting your power factor, you reduce Total Current, lower demand charges, and free up system capacity.

ESE Power Factor Correction Systems

Our PFC systems act like your own reactive‑power generator. They supply the Reactive Current locally—so the grid only delivers Active Current:

As a result, your ammeter shows 20–40% less Total Current draw, reducing losses and demand fees.

Diagram showing PFC system benefits

Who Can Benefit?

Any inductive load can improve efficiency with PFC, including:

In competitive markets, every kilowatt‑hour saved is a direct bottom‑line benefit.

Additional Advantages

ESE has built a reputation for heavy‑duty, long‑life PFC systems—trusted by hospitals, city towers and industrial clients across Australia.