In the A.C. power networks the total power supplied to a load is much more than the actual power consumed by a load.

The total power suplied to a load splits into two types(1)Actual power (2)Reactive power.The combination of both powersis termed as Apparent Power known as KVA.

The Reactive Power,KVAr does not do useful work and un-necessarily puts extra load on the electrical system which results in wasteful over heating of conductors and poor voltage regulator.

Utility companies impose strict regulation to limit the reactive power by improveing the power factor of the system.

Adhering to the standard regulations helps save penalties and also limits the un-wanted currents which burden the system.

Installing a Power Factor Improvement (PFI) panel of correct rating and configuration is reall advantageous to users of electricity.