Power Factor is a measure of how effectively your business is using incoming power. Improving power factor by installing equipment to correct supply inefficiencies can reduce the amount you pay each month in network demand charges.

A good power factor of close to one means your business is using the electricity grid efficiently. A poor power factor means your business is most likely paying superfluous network demand charges.

If your business is on a kVA network tariff, it pays to optimise your power factor – which is the ratio between real power (kW) and apparent power (kVA).

The kVA demand-based tariffs are calculated on the apparent power that is supplied to a site (kVA) rather than the real power used (kW). They are designed for optimal utilisation of the electricity grid for the transfer of real power.


Our Energy Solutions team delivers Power Factor Correction (PFC) services from assessment through to the installation of new equipment.

  • To get the ball rolling, our team reviews your electricity usage data to identify whether you will benefit from power factor correction. If applicable, we will select the PFC equipment that is right for you and provide an indicative proposal including the business case.
  • After a technician has completed an on-site inspection of your premises we will provide you with a fixed price proposal.
  • Should you choose to move forward with the proposal, we will manage the supply and installation of the PFC equipment using accredited technicians.


  • Upfront report and business case provided
  • Fixed price for completion
  • Reduces kVA demand charges
  • Reduces electricity costs
  • Increases the available capacity of your network connection
  • Reduces greenhouse emissions
  • We guarantee a minimum power factor of 0.95 during the warranty period
  • Free power factor monitoring for our electricity retail customers for the first 12 months while you remain an ERM retail customer
  • Standard three year equipment warranty (optional extended warranties are available)
  • On-bill financing where payment instalments are included on your electricity bills. (Available to ERM electricity retail customers while you remain an ERM electricity retail customers and subject to credit approval)

Contact us to find out more about Power Factor Correction.

You can also download the brochure to see why Power Factor Correction should be part of an integrated energy management plan.

Download the brochure