In our area, many people have installed the Wheat Grinding Machine and running it as a part time business. This machine has a 20HP-400V motor with star delta control. Normally we have problem of voltage variation and some time voltage drops at 350V.
One person met with me and discussed that he is now going to install a PFI plant in order to reduce the utility bill. I tried to teach him that improving of PF doesnt decrease the utility bill but he (a non technical person) given me argument that three of his business colleagues also installed PFI plant with his machine and his utility bill decreases by 5-10% with same work load. I wondered that how it can be possible. As with such kind of small business, no penalty is charged by utility company on low PF then how does the amount of utility bill drop?
We know that the energy meter measures only the active power, and with the reactive power, no problem that load is taking it from transformer or from capacitors.