Power Factor is something that affects most businesses.
Power factor is the measure of how effectively your business uses its electricity supply. It is the relationship between real and apparent power (kVA). If your site has poor power factor, you may be paying more than you need to for your electricity.
Networks impose demand charges on large businesses for the demand they place on the electricity grid. If your business is being charged a network demand charge in (kVA), power factor correction reduce the amount you pay in network demand charges by improving the effectiveness in power supply or consumption.