16-Month ROI Guaranteed: Eliminating Reactive Energy Charges at Bokomo Savoury Foods in Johannesburg
For Bokomo Savoury Foods in Johannesburg, the Augos Energy Intelligence platform identified hidden costs caused by poor power factor. Our turnkey correction system not only eliminated all Reactive Energy Charges but also secured an exceptional 16-month payback on the R189,000 project. This verifiable case study provides the blueprint for South African manufacturers to convert avoidable utility penalties into guaranteed ROI.
The Challenge: Hidden Costs from Poor Power Factor
As part of our long-standing relationship throughout the Pioneer Foods group, our Energy Intelligence Platform continuously monitors all sites. A recent data review flagged a significant financial opportunity at Bokomo Savoury Foods: substantial penalty costs due to poor Power Factor (PF).
The metering data clearly showed operational instability: a wide difference between Active Power (kW)—the actual energy doing work—and Apparent Demand (kVA)—the total energy supplied. This excess kVA, known as Reactive Energy, was unnecessarily flowing between the council and the site, adding costs through high kVA demand and direct Reactive Energy Charges.
The Augos Solution: Turnkey PFC Implementation
The fix was simple and guided by the platform's analysis: install a suitably sized Power Factor Correction (PFC) system as a full Repairs & Upgrades solution.
This corrective action was specifically designed to reduce the Apparent Demand (kVA) down to nearly the same level as the Active Power (kW). The system was implemented as a complete turnkey solution, ensuring minimal disruption to operations.
The Result: Immediate & Auditable Savings
The results were immediate and auditable. Pre-installation data showed high divergence between Power and Demand lines. Post-installation, the Demand line is now almost equal to the Power line, confirming near-perfect Power Factor.
Even with increased load on the site, the corrected system ensures demand (and associated costs) remain controlled. The project's financial metrics provide clear proof of performance, with initial monthly savings of R12,000 escalating to R19,500 due to increased site load and tariff changes.
NERSA Compliance & Financial Stability
For food production facilities in South Africa, compliance with utility regulations is paramount to financial stability. Tariffs in Johannesburg, regulated by NERSA (National Energy Regulator of South Africa), impose financial penalties when a site's Power Factor drops below the mandated threshold. The Augos solution directly eliminates this regulatory risk by ensuring the Bokomo site operates compliantly, transforming unnecessary utility costs into a fixed, predictable capital asset.
Key Takeaways
Poor Power Factor creates hidden costs through kVA Demand Penalties and Reactive Energy Charges
Continuous platform monitoring identifies PFC opportunities before they become critical
Turnkey PFC solutions deliver fast ROI (16-month payback at Bokomo)
PFC is not a cost—it's an escalating financial asset that grows with site load and tariff changes