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:
- Active Current — actually performs work (productive)
- Reactive Current — maintains the magnetic fields (non‑productive)
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.

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:
- Larger cables, transformers & switchgear
- Utility demand charges (kVA tariffs)
- Energy losses in your network
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.

Who Can Benefit?
Any inductive load can improve efficiency with PFC, including:
- Manufacturing plants & machine shops
- Office towers & data centers
- Hospitals & institutions
- Large retail complexes
- Pulp & paper, sawmills, textile mills, etc.
In competitive markets, every kilowatt‑hour saved is a direct bottom‑line benefit.
Additional Advantages
- Reduces losses in switchboards & busbars
- Prolongs equipment life expectancy
- Improves voltage stability & dampens dips
- Lowers greenhouse‑gas emissions
ESE has built a reputation for heavy‑duty, long‑life PFC systems—trusted by hospitals, city towers and industrial clients across Australia.