Image via Wikipedia Powerfactor energy savings - also known as Demand Side Management

Energy consumption was brought into focus for industry when the Climate Change Levy (CCL) was introduced. There is a proven way to save energy costs and reduce this levy that large electricity users may be overlooking. While there are no tax benefits for installing efficient and effective power factor correction measures yet, the Government is to introduce Enhanced Capital Allowances (ECA) that enable the full cost of certain energy saving devices, when used in certain applications, to be written down against taxable revenue in the first year (Why power factor correction equipment was not included in the tax allowances introduced along with the Climate Change Levy is a complete mystery!). However the fact remains that by applying powerfactor correction methods, many large electricity consumers can reduce their electrical energy costs significantly.

Tags: AC power, Climate Change Levy, Energy Conservation, Energy Efficiency, Power-factor correction