To recognise our capability and specialty in this area of energy efficiency, Central Capacitors (M) Sdn Bhd has signed a tie-up as Illustrated below in the Business Times, NST on 5/5/99

Tenaga finds solution to 'power factor'

SEALED... Sidek exchanging the agreement with Central Capacitors managing director Emy Yap

TENAGA Nasional Bhd has found a solution to address the "power factor" problem after having collected a total of RM 8 million in surcharge a month from customers last year. "Under the current tariff, those with a power factor of below 0.85 per cent will be penalised. "This is because we had to generate re-active or useless power which is also costly," said vice-president of Tenaga's customer services division Datuk Md Sidek Ahmad. He told reporters this after signing a service level agreement in Kuala Lumpur with Central Capacitors (M) Sdn Bhd for power factor enhancement at the customers' end for improved energy efficiency.

A high power factor means that electrical power is being utilised effectively while a lower power factor indicates poor power utilisation.Sidek said solving this problem meant potential cost savings for Tenaga in terms of a reduction in operating cost and system losses, and a more efficient utilisation of installed capacity.For customers, it meant lower electricity bills by eliminating power factor penalty charges, he said.Under the tie-up, Central Capacitors will provide consultancy as well as market their products (capacitors) and install them for customers who have been identified as needing power factor correction.Throughout the country, there are about 12,000 customers having a power factor of below 0.85 per cent and Sidek said they need to be educated and to invest in improving the power factor.Most of the customers liable for power factor surcharge are in the commercial and industrial sectors while for domestic and residential customers, those using low voltages are not chargeable.For a power factor of between 0.85 and 0.75 per cent, the surcharge is one-and-a-half times that of the bill.In the case of a subsequent one per cent drop in power factor, the surcharge will be three times that of the bill.He said office buildings as well as industries using a lot of motors were the ones identified as having this problem. - Bernama.