Let me explain what id powerfactor and how it is used to maintain the electricity bill,
Power Factor is a measure of how efficiently electrical power is consumed. This induction is caused by equipment such as lightly loaded electric motors, luminaire transformers and fluorescent lighting ballasts and welding sets, etc.
What does it do to my electricity bill?
In a 3 phase supply, kW consumed is (VOLTS x AMPS x 1.73 x Power Factor) / 1000. The Electricity Company supply you VOLTS x AMPS and they have to supply extra to make up for the loss caused by poor Power Factor. When the power factor falls below a set figure, the electricity supply companies charge a premium on the kW being consumed, or, charge for the whole supply as kVA.
What causes Power Factor to change?
Inductive loads cause the AMPS to lag behind the VOLTS. The wave forms of VOLTS and AMPS are then "out of phase" with each other. The more out of phase they become then the lower the Power Factor. Power Factor is usually expressed as Cos Phi. (Ø)
Hope you got it...