Low power factor can be caused by: Inductive Loads: Equipment such as motors and transformers that draw lagging currents. Harmonic Distortion: Non-linear loads that introduce harmonics into the system. Poor Design: Inefficient system design that does not account for power factor correction. A low power factor results in several inefficiencies: Increased Transmission Losses: Higher current flow leads to greater energy losses. Overloaded Equipment: Equipment must handle higher currents, leading to potential overheating and reduced lifespan. Higher Costs: Utilities may charge penalties for low power factors due to the increased demand on their infrastructure.