Electricity is the primary source of power in most countries including Sri Lanka, and saving or minimising the waste of it has become crucial in facing the world power crisis. Electrical power is wasted in various ways including reactive power waste due to induction and capacitance of appliances, and standby power loss. These two contribute most to the waste. This paper focuses on reducing the reactive power waste of inductive electrical appliances commonly used in home and office by increasing the power factor. An attempt was made to reduce the power waste of inductive electrical appliances by connecting a capacitor bank with a variable capacitance in parallel with the appliance. Optimal capacitance and the power factor are determined using the capacitor bank. Results indicate about 30 percent of power saving could be achieved for fluorescent tube lamps using a power factor correction. A maximum power factor of 0.93 is achieved at the capacitance value of 2.99 μF. It is not possible, by this method, to increase the power factor of more capacitive equipment such as CFL bulbs and ceiling fans. In this case, power minimisation could be tried connecting inductors in parallel with the equipment. Power factor and power consumption of home electrical appliances were measured for advising the general public of high power consuming equipment, especially in stand-by mode. To attain a further reduction of power waste it is proposed to measure inductance, capacitance and resistance of appliances using Hendry, Farad and Ohm meter. Total impedance can then be calculated and the power waste could be minimised using appropriate capacitors and/or inductors.