Case study · Manufacturing
PFC that stopped working, at a Much Asphalt plant.
From December 2024 to April 2026, a Much Asphalt plant held its power factor at about 1.0. In May 2026 it fell to 0.86, adding about R12,000 a month in avoidable demand charges on the plant incomer. The Augos platform flagged it on 1 September, a survey found failed fuses and contactors, and the repair is booked for early November. Power factor came back on its own in October, as it did once before in June, so the saving is only claimed after a full month following the repair.
- The plant held power factor at 0.998 to 1.000 in all 16 months with data from December 2024 to April 2026, then fell to 0.86 in May 2026.
- Avoidable demand charges went from under R200 a month to about R12,000.
- The loss was entirely on the plant incomer; the office supply stayed close to 1.0.
- A survey found failed fuses and contactors, and the repair is booked for early November.
By Oliver Nesbitt, Sales & Client Relations, Augos Energy
Seventeen good months, then a slip
This Much Asphalt plant has two metered incomers, one for the office and one for the plant. In late 2024 the site's power factor at maximum demand was 0.80 to 0.82, and the avoidable part of the demand charge was R22,410 and R24,230 a month.
In December 2024 that changed. Power factor went to 0.999, and from then to April 2026 it stayed between 0.998 and 1.000 in all 16 months with data. Avoidable demand cost fell to under R200 a month.
Then in May 2026 it dropped to 0.86. It came back to 1.00 in June, and from July it sat at 0.87 to 0.88. Nothing tripped and production carried on. The only sign was in the demand charge.
How we saw it
Our PFC analyst reporting works on 30-minute cost signals. It takes the plant's measured kVA and kVAr, runs them through the site's own tariff, and works out what the demand charge would be at a power factor of 1.0. When the gap passes a threshold, it raises an alert.
The alert landed on 1 September 2026: power factor 0.86 at maximum demand, and correcting to 1.0 could bring maximum demand down from 540.5 kVA to 469.8 kVA, worth an estimated R11,264 a month. The platform's measured loss for July, August and September was R12,581, R12,468 and R11,636, so the alert was in the right range.
| Month | Power factor (site) | Avoidable demand cost |
|---|---|---|
| April 2026 | 0.999 | R93 |
| May 2026 | 0.858 | R13,199 |
| June 2026 | 1.000 | R12 |
| July 2026 | 0.876 | R12,581 |
| August 2026 | 0.870 | R12,468 |
| September 2026 | 0.875 | R11,636 |
Where on site was the problem?
The office supply stayed close to 1.0 throughout. The plant incomer is where the reactive power appeared: about 280 to 300 kVAr lagging at peak from July to September, where for most of the previous year it had read slightly leading. On this plant's City of Ekurhuleni tariff no reactive energy charge appears, so every rand of loss came through kVA demand. From May to September the avoidable demand cost came to R49,896.
The June reading is worth noting. Power factor recovered for one month and then dropped again, which pointed to something intermittent, such as a contactor or a fuse, rather than only an aged capacitor.
What the survey found
The annual PFC survey was completed in early October. The fuses and contactors had failed, and the plant's PFC panel wasn't running at full capacity. The repair was approved on 19 October and is booked for early November.
What October shows so far
From 1 October the plant incomer reads close to 1.0 again, and the avoidable demand cost for October to the 26th is R221. That happened before the repair, just as it did in June, which fits an intermittent fault rather than a fix. So once the repair is done, we'll compare the first full month after it, on the same tariff, against July to September before we call it fixed and put a payback on it.
What I'd tell any plant engineer
Installing PFC isn't the end of the job. Capacitors, fuses and contactors wear out, and the panel won't tell you. Watch your power factor every month, not once a year, and when it moves, get the panel surveyed before the next bill.
Figures from the Augos Power Factor and Demand report for the site and its two incomers, October 2024 to October 2026, as calculated on 27 October 2026. June 2025 is missing from the report. Avoidable demand cost is the demand charge at the actual power factor minus the demand charge at 1.0.
In this story
The tools behind the result.
Power factor correction
How power factor is measured, priced against your tariff and kept corrected.
Explore ›A 0.99 power factor at I&J
Why an alert is a reason to look, and how the tariff decides what it is worth.
Explore ›Power factor and demand report
The report that put a monthly rand value on the drop.
Explore ›Much Asphalt moves to Ekurhuleni Tariff E
The same client's tariff change, and what the billed months show.
Explore ›The rest of Augos Energy
Energy management
Each site metered, priced on its own tariff and every bill checked against the meter.
Explore ›Bill verification
Every bill rebuilt from your own meter and the tariff, line by line.
Explore ›Tariff optimisation
Your metered load priced on every tariff your site qualifies for.
Explore ›Tenant billing
Each tenant sub-metered and billed on what they used.
Explore ›Energy procurement support
Wheeling, PPA and solar offers replayed on your own 30-minute load.
Explore ›Energy reporting
Measured data by site and period, as downloads, by API or as AI-ready exports.
Explore ›More case studies
More results, with their basis.
Questions
Why would a PFC system that was working stop working?
Capacitors lose capacitance with age and heat, fuses blow, contactors burn out and controllers get set wrong. Any of these takes kVAr out of the bank without tripping anything, so the plant carries on and the bill goes up.
How quickly does a failed PFC step show on the bill?
In the next billing month. Here power factor dropped in May 2026, and that month's avoidable demand cost went from under R200 to R13,199.
Does every tariff charge for reactive energy?
No. On this plant's City of Ekurhuleni tariff no reactive energy charge appears in any month, so the whole cost of poor power factor comes through the kVA demand charge.
Is the alert estimate the saving?
No. The alert assumes correction all the way to 1.0, so it is a ceiling. We use the site's measured monthly loss to size the problem, and a full month after the repair to confirm the saving.
Free site assessment
Assess your measurement point and get a quote.
Tell us the site type, supply size and number of sites, photograph the measurement point, and we quote. Electricity now; water, gas and fuel next.