Grid Code: the 0.97 power factor required since April 2026

1. What is power factor?

Power factor shows how much of the energy your plant draws is turned into useful work. Motors, compressors and transformers also draw reactive energy (kVArh), which does no work and lowers the power factor.

2. The Grid Code requires 0.97 for 95% of the month

• A power factor between 0.97 lagging and 1.0.
• Measurement every five minutes.
• Compliance at least 95% of the time each month.
• In force since April 8, 2026.

3. Who does it apply to?

Medium-voltage plants with a contracted demand of 1 MW or more, and all high-voltage plants.

4. What does the CFE tariff charge for power factor?

This is separate from the Grid Code. With less than 1 MW of contracted demand, CFE adds a surcharge to your bill if your power factor is below 0.90 (90%) and gives you a credit if it is above. With 1 MW or more, the threshold is 0.97 (97%).

See every GDMTH tariff charge

5. How does a BESS solve it?

The BESS inverter compensates reactive power continuously, so it helps sustain the power factor the Grid Code requires. On the bill, a surcharge is reduced or becomes a credit, and an existing credit grows. We measure how much of the savings comes from this, and you see it separately in your reconciliation.

How the BESS works