POWER QUALITY BUSINESS CASE FOR POWER CONDITIONING - PQ CASE STUDY #1

PQ CASE STUDY # 1
Power Quality - The Business Case for Power Conditioning

In a two-year study involving customer projects around the world, Powervar, a specialist in power management systems, examined how power quality technology can significantly reduce the service burden rate, delivering cost savings and a measurable return on investment (ROI).  Here, Powervar UK Country Manager, Rob Morris, talks about the study, and outlines the business case for power conditioning

Most organisations today recognise power quality is an issue when it comes to the detrimental effect of power disturbances, such as electrical noise and voltage impulses, on sensitive electronic systems. The problem, however, is in accurately calculating figures that demonstrate the financial downside of dealing with bad power. Or simply put, how can you establish the ROI when selecting from different power protection systems?

For many organisations, power quality problems tend to be ‘out of sight, out of mind’. While the frequency of spikes, surges and other phenomena in power distribution is generally understood and accepted, many fail to make the connection between these irregularities and the impact to the bottom line.

Over the last two years, we have worked closely with industry leading customers to identify a technique to help quantify and educate the industry about calculating real return on investment. A major focus has been about understanding the so-called ‘service burden rate’ – this is the proportion of the price of a product allocated to cover ongoing maintenance and repairs during the warranty period.

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