Low Power Factor Penalty on Your Electricity Bill
Saudi Power Factor Company diagnoses and removes the low power factor penalty on electricity bills across Saudi Arabia. A penalty means your power factor sits below the tariff level, so reactive energy is charged. Saudi Electricity Company tariff: reactive energy beyond 48.4% of active energy is billed at 5 halalas per kVArh; we design to 0.95. Most cases trace to a failed, undersized or mis-set capacitor bank.
What you receive: a written diagnosis of why your power factor is low, with the fix and a price, within one working day of receiving one month of your electricity bill. Request a quotation
What does the penalty look like on my bill?
Look for any of these signs:
- a reactive energy line (kVArh) or a power factor surcharge;
- a printed power factor below your tariff level;
- a billed kVA figure well above your kW demand;
- charges that rose after new motors, chillers or drives; or
- a penalty that returned after clean bills.
Power factor is kW divided by kVA. The further they drift apart, the larger the charge.
Why is my power factor low?
The cause decides the fix. This table links what you see to the likely cause.
| What you see | Likely cause | What we check |
|---|---|---|
| Penalty appeared suddenly | Failed capacitor step, welded or open contactor, blown fuse | Step currents and capacitance, contactor condition |
| Penalty only at weekends or night shifts | Bank is too large and over-corrects at light load, or controller target is wrong | Controller target, step logic |
| Penalty after new equipment | Added motors or drives outgrew the bank | Load list against installed kVAr |
| Bank present but power factor never reaches target | CT on wrong feeder, wrong CT ratio, or capacitors aged | CT position, controller settings, capacitance |
| Fast-changing load such as welding or cranes | Contactor banks cannot follow | Load profile, need for thyristor switching |
How do I avoid a low power factor penalty?
Fix the cause, then hold the target:
- Failed bank: repair or replace the capacitors, contactors and controller under our retrofit and replacement service.
- Undersized bank: add steps or install a new APFC panel sized to current demand.
- Harmonics present: specify detuned steps so new capacitors survive.
- Unclear picture: a power quality survey logs the load across a working week.
If you want the penalty removed under one scope, see power factor penalty removal.
How do we diagnose and fix it?
- Send the bill. One month shows kW, kVA and the reactive line.
- Desk review. We estimate the shortfall in kVAr.
- Site check. We read the controller, test each step and check the CT.
- Cause report. You receive the cause, the fix and the target.
- Repair or supply. We replace parts or build the panel.
- Verify. We confirm the power factor on the next bill and the controller log.
Who we help
Saudi Power Factor Company has worked in Saudi Arabia since 2010 and is approved by Saudi Aramco, SABIC and the Royal Commission for Jubail and Yanbu. We have worked on projects for all three, and we reach every region of Saudi Arabia.
We have worked on projects for Saudi Aramco, SABIC and the Royal Commission for Jubail and Yanbu, in all regions of Saudi Arabia. Tell us your plant type and city in the quotation form, and we describe the scope closest to your penalty-removal job.
Questions we are asked before quoting
Who removes a low power factor penalty in Saudi Arabia?
Saudi Power Factor Company provides diagnosis and correction for low power factor penalties from Dammam, with panels built in our own workshops. We have worked in Saudi Arabia since 2010 and are approved by Saudi Aramco, SABIC and the Royal Commission.
How is a power factor penalty calculated?
Your bill compares the reactive energy or power factor measured at the meter with the level allowed in your tariff, and charges the difference. SEC sets the formula and threshold. Send your bill and we read each line for you.
What affects the cost of fixing a penalty?
Cost follows the cause. Replacing a contactor or controller is a small job, while a new APFC panel depends on kVAr, steps, detuning and enclosure. The diagnosis tells you which case applies, and the proposal prices it.
How long does it take to stop the penalty?
A repair can be complete within a site visit. A new panel follows the build lead time of 2–3 weeks for an APFC panel and 3–4 weeks for a detuned bank. The penalty ends from the first billing period in which the correction is working.
Is 0.98 power factor good?
Yes. A power factor of 0.98 is close to unity and leaves little reactive power to bill. Pushing beyond your tariff target adds cost and risks over-compensation at light load, so we set the controller to your required level.
What should I send to get a quotation?
Send one month of your electricity bill, showing kW, kVA and any reactive line, plus photos of the capacitor panel nameplate and controller display if you have one. We return a diagnosis and proposal.
Facing a low power factor penalty in Saudi Arabia? Send us one month of your electricity bill. A named engineer replies with the cause and a quotation within one working day.
Email: inquiry@saudipowerfactor.com | Request a quotation