Hix Electrical and Data Services is one of the largest divisions of Hix Group and is made up of 2 business units, one of which is our “Electrical Special Services” Unit. This business unit focuses on, as its name implies, specialized areas such as Level 2 Authorised Service work, Energy Efficiency, Field and Carpark Lighting and other specialized commercial requirements such as the improvement of power usage in commercial business.

The main way that this power usage can be improved is by improving the Power Factor of the Electrical Installation.

What is Power Factor?

Power Factor is described by the Service and Installation Rules of NSW, as the effective use of the Electricity Distributor’s distribution system. It is a measure of how effectively you turn the electricity supplied to your business into actual productive power. That is the way to measurement efficient power usage.

What is Power Factor Correction (PFC) The technical stuff?

Working power or Real Power is the power that performs the actual work in creating heat, light, mechanical motion (motors etc.) or other services. It is measured in Kilowatts (KW).

Reactive power (lazy power) doesn’t do any useful work but rather maintains the electromagnetic field, that is needed by Air Conditioning systems and the like to operate. It is measured in units of kilovolt-amperes-reactive (kVAr). Reactive Power contributes to your electricity bill but is not actually used. This is the power that is drawn from the power grid that you are paying for.

These two components combine to create the apparent power. Apparent power is measured in kilovolt-amperes (kVA). Apparent Power is your total usage.

Power Factor Correction decreases the gap between the KVA (lazy power) and KW (working power) needed at a site. Many network’s charges are based solely on kVA. The higher the Power Factor, the more effectively electrical power is utilized, conversely the lower the Power Factor the more this results in poor utilization of power.

Why Installing Power Factor Correction Units (PFCU) is important to your business. The money saving stuff!

Improving Power Factor Correction can mean significant savings to your business by improving efficiencies,

In areas with Network kVA charges, PFC can reduce your total energy bill by as much as 10-30%.

Installing Power Factor Units introduces an alternative, more efficient source of reactive power installed locally at your site in or near the Switchboard room.

PFC units are a group of switchable Capacitor Banks mounted in a cabinet connected to your supply from the street. These capacitors decrease the site requirements for reactive power from your electricity supply and therefore reduces kVA demand, thus reducing the sites energy bill.

Reduced costs

Reduction in kVA demand and therefore electricity costs.

Extended equipment life

Extend the life of your equipment by having it run at a lower demand.


Compliance with regulatory codes


More power available for site expansion and future works without the need for new switchboards and cabling upgrade

  • Do you have lots of rotating equipment or motors?
  • Do you have high HVAC-r loads?
  • Are you a sawmill?
  • Are you a plastics company?

If so, PFC can add real value to your bottom line with IRRs that often exceed 50%.