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Shandong denang golden corn Biotechnology Co., Ltd

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The power factor is as high as 0.89, why still there is the electricity adjustment charge fine being charged 50, 000 yuan a month?
Shandong denang golden corn Biotechnology Co., Ltd
At Shandong Denengjin Corn Biotechnology Co., Ltd. There is a section of 110kV input line which is used as the power supply for the normal operation of the production equipment at the company. In this section, the main transformer is a 110×10 kV transformer, with a capacity of 40000kV·A. The main equipment on the 10kV side is one 10/0.4kv transformer (which mainly consists of four outgoing lines, i.e.Dexin I, II, III and IV), as well as other equipment of 10kv, such as the pumps, motors and so on. There in not one 10kV reactive power compensation capacitor cabinet installed on the high voltage side of the 10kv bus. One low voltage reactive power compensation capacitor cabinet with a total capacity of 15000kvar is provided on the 0.4kv load side. The average power factor on the high voltage side, which has been measured by the power supply company was between 0.88 and 0.89, which has failed to meet the requirements of the power supply unit. As the result, the company had to pay an electricity adjustment charge of about 50, 000 every month.
An analysis of the situation:
The metering on the site was executed on the 110kv line (the high voltage side). The capacity of the main transformer is 40000KV·A. The voltage level on the secondary is 10kv. On the 10kv side, there is no  one high voltage reactive power compensation capacitor cabinet equipped.
On the 10 kV side, the power consuming equipment are mainly the 10kv pumps, the 10kv motors, the 10kv fans and the 10/0.4kv transformers and other equipment.
The 10/0.4kv system is the power supply line for Dexin I, II, III and IV lines. On the 0.4kv side, one reactive power compensation capacitor cabinet was equipped, with a total compensation capacity of 15000 kvar. This was a low voltage side reactive power compensation capacitor cabinet. The power factor of each branch lie was 0.91, 0.90, 0.89 and 0.90, respectively. The compensation effect was not very perfect. 
On the 10kV side, all of the power consuming equipment are inductive load, the natural power factor was too low, and the overall demand for reactive power was too large; as a result, the monthly power factor of this company was around 0.88 to 0.89. The criterion for assessment which was specified by the power supply bureau was 0.90, so there was the electricity adjustment fee which this company had to pay!The average monthly electricity adjustment fee in the company’s electricity bill was 50, 000 yuan.
Shandong denang golden corn Biotechnology Co., Ltd
According to the data and on-site measurement data and on-site conditions, Anhui DELITER Electric Power Science & Technology Co., Ltd has installed a set of 4500 kvar high voltage reactive power compensation capacitor cabinet on the 10kv side, which contains 3 banks, and the capacity of each of the three banks is 1000,1500 and 2000kvar, respectively. This has ensured that the power factor of the system can be maintained above 0.9. As the result, the electricity adjustment penalty fee which had charged this company before that time was eliminated.
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