Large businesses typically consume a lot of energy so power costs can be a significant business overhead. 

The good news is that installing a simple unit may help your business manage those charges.

But firstly, it's important to understand your power factor ratio.

network charges

Network charges are costs set by network providers and passed onto consumers by energy retailers like Origin. It's the cost of using and maintaing the electricity network. Your network provider will depend on your site location.

More on network updates

Power factor is a component of your network charges

Network providers charge large businesses for the demand they place on the electricity gird. Power factor is a critical component of network costs and is directly related to demand charges. You can check your bill for demand or kilo-volt-ampere (kVA) charges.

How to read your bill

why is power factor so important?

Power Factor may be a way for you to control your energy costs.

If you have a kVA charge on your energy bill, then there may be an opportunity for you to improve your power factor and reduce your energy costs.

What should your business power factor be?

As an example, a power factor of 0.5 means that 50 per cent of power supplied is active power. The other 50 per cent of your power is reactive. Ideally, your business should aim to lower your reactive power, which will save on demand charges. In technical terms, power factor is the ratio of your real power (kW) divided by the apparent power (kVA) to be supplied.

How to improve your Power Factor ratio?

By installing a power factor correction unit, your business can start to work more efficiently and reduce its demand changes. Installing a power factor correction unit is a simple process, but chat to your Origin Business Account manager about the options available.

Looking to improve your Power factor?

Send an enquiry and we'll chat about the best solution for your business.

get started


Email us on with your site details.



We'll assess your site and recommend the most suitable solution for your business.


We’ll install the Power factor correction unit.