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Tips to Reduce Electric Bills

(Editor’s Note: The following article is being reproduced through the courtesy of MERALCO. We feel that it
would be of benefits to all our readers especially with the current power rate adjustments.)

We are all aware that our power factor lower than 85%. On importantly, the cost of investment
electric bills have increased the other hand, power factor higher as compare to savings which could
significantly due mainly to the than 85% is given a discount, in be realized presents a very tempting
increase in the price of fuel oil and effect sharing with you whatever we alternative.
the devaluation of the peso. There is realize in achieving a higher system __________________________
usually no better opportunity to power factor.
discuss energy conservation than HOW TO IMPROVE POWER
immediately after or just before an Please note that the FACTOR
increase in energy rates. manner by which we give you the
Just how much electricity discount is thru a reduction in the There are several methods of
costs stand to increase can be seen kilowatt-hours’ used in computing improving power factor. Some of
here. your bills. As you will see below, them are:
the percentages on the left column
SEE APPENDIX 1 are the power factor. The numbers a. Operate induction motors
on the right column are the narrated capacity.
A typical manufacturing corresponding factors to convert b. Use High Power Factor
firm, ABC Manufacturing consumes registered kWh consumption to Fluorescent Ballast.
375,000 Kwh a month. For this billing kWh. c. Use synchronous motors.
particular consumption, the (If necessary).
company paid Meralco P137,268 in SEE APPENDIX 4 d. Install capacitors.
December 1979. For the same
consumption, his bill was P290,706 For example, if your consumption is
in December 1981. By December 100 kWh and your existing power There are other accompanying
1983, his bill will be P505,811. It is factor is 80% you are billed for an benefits whish will redound to
readily seen that, for the same equivalent consumption of 102.3 reduction in your electric bill such
consumption, the company’s kWh or a penalty of 2.3 kWh. On as lower line losses in your electric
electric bill has increased 3-1/2 the other hand, if you can improve system. Other benefits include good
times in four years. this power factor to 95%, you will voltage regulation making your
If we look closer at be build for only 96.5 kWh or a equipment more efficient and
ABC’s electric bills, we will find discount of 3.5 kwh. At the cost of prolonging the economic life of
three salient variables which affect P1.40 per kWh by Jan. 1984 and the your equipment.
your monthly bill. volume of the power requirements
of your operation, you can realize
SEE APPENDIX 2 by improving your power factor
from 80% to 95% or a cumulative ADVANTAGES OF HIGH
The first item would be discount 6.8 kWh or P8.12 savings POWER FACTOR
what is indicated as P.F meaning for your 100 kWh consumption
power factor; the second is the KW Looking at the ABC 1.Lower power loss in the
demand; and the third is the energy Manufacturing the resulting savings electrical system.
or KWH consumption. Our focus by improving the power factor 2.Good voltage regulation.
will be on ways to change these 79.2% to 96% amounts to P34,500 3.Efficient operation of
variables to reduce your electric per month or P414,000.00 annually, electrical machines/load
bills. a 6.8% savings on its electrical bill.
4.Less equipment breakdown
Power factor is an __________________________
indicator of the efficiency with and maintenance
which our load utilizes available SAVINGS OF ABC
power. If we were to try to explain MANUFACTURING The second variable is kW
power factor in terms familiar to demand. This is a measure of
laymen, the power factor is like the Improvement in power factor- your maximum utilization of the
ratio of the liquid to the total 79.2% to 96% available capacity over a
content of the beer mug including Investment- installation of 525 kvar
month’s period. Said capacity
the foam. Capacitor cost- P262,500
Monthly savings in electric bill- refers to our investment in terms
P34,500 of distribution transformers and
SEE APPENDIX 3 Payback period- 8 months conductors to meet your load
requirement.
Whenever the power There are various ways to
factor of your operation is low, it improve your power factor.
imposes some strain on our electric However, from experience, we find
system and contributes to higher the installation of capacitors the
line losses. At present, RSL is the most practical. Capacitors require
industry standard. This is the reason practically no maintenance and have
why our rate schedule penalizes long economic life. More

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