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**Disadvantages of Low power Factor: -** 1) Cross section of conductor increases: - As power factor reduces current increases, cross section of conductor increases. Hence its cost increases. 2) Design of supporting structure: - As power factor reduces, cross section of conductor increases, so its weight increases. To handle this weight design of supporting structure becomes heavier, so its cost increases. 3) Cross section of terminals increases: - As power factor reduces, current increases, Hence cross section of switch gear, bus bar, contacts, and terminals increases. So its cost increases. 4) Copper losses increases: - As power factor reduces current increases. So copper losses increases. As an effect efficiency reduces. 5) Voltage drop increases: - As P.F. reduces current increases. Therefore voltage drop increases, so regulation becomes poor. 6) Handling Capacity of equipment reduces: Handling capacity (KW) of each equipment such as Alternator, transformer reduces as power factor reduces. e.g. 6) High KVA rating of equipment required:- As power factor decreases KVA rating of all equipment’s increases, so that its cost increases. 7) Cost/unit increases: - From all above disadvantages it is seen that cost of generation, transmission & distribution increases. Also its performance efficiency & regulation reduces, So that cost/unit increases.