Senseible

Does the Bureau of Energy Efficiency Morbi power factor report save any electricity or carbon, and what does it save?

Almost nothing in energy terms: the Bureau of Energy Efficiency (BEE) Morbi power factor report counts zero units and zero carbon dioxide. It saves rupees (Rs) 2.01 lakh a year, 2.5% of the bill, for 187 kilovolt-amperes reactive (kVAr) more capacitors and an automatic power factor controller (APFC) panel costing Rs 2.42 lakh.

What the report sets out

What the utility rule is

The report says the Gujarat utility it names gives an incentive on demand and energy charges for power factor above 0.95, rising with each step above 0.95, and charges a penalty below 0.85. At unity the incentive is 2.5%. It says Morbi ceramic plants run at 0.90 to 0.94 and so earn no incentive. These are the rules at the report's date, so read your own bill for the current slab.

What it does not save

The report counts no fuel saved and no cut in electricity consumption; the gain is a rebate on the bill. It states that the project does not contribute environmental benefits. So the report counts zero units and zero carbon dioxide, whatever the payback. Our note, not the report's: capacitor placement can trim cable losses slightly, though nothing in the report quantifies it.

Cost numbers that do not tie

The summary cost is Rs 2.31 lakh, and the cost table's total is Rs 2.42 lakh. The table's own lines (1.96, 0.20, 0.21) add to 2.37, and the paragraph above it (1.96, 0.15, 0.19) adds to 2.30. Payback is 1.2 years either way: 2.42 over 2.01 is 1.20, and 2.31 over 2.00 is 1.16.

The report's bill arithmetic

Figures are the report's own, at 2010 prices.

What Senseible does here

Senseible reads fuel invoices and electricity bills into monthly records, so the demand and energy charges, and any power factor line a bill shows, are on file month by month. Whether a rebate applies depends on your utility's current tariff.

Sources: BEE, Detailed project report: energy cost reduction by power factor improvement, Morbi ceramic cluster (SAMEEEKSHA)

Last reviewed 2026-11-04. Figures are from a BEE Small and Medium Enterprises (SME) programme project report at 2010 prices and tariffs. Check your current tariff and a current quote.