Answer: Note that it was only the current that was shown in their demo and not the KILOWATT-HOUR reading. Electric bills are computed based in KILOWATT-HOUR and not on current reading alone.
Answer : Not in this case. There are two different types of current in the setup they use; The RESISTIVE (In phase) current, and the REACTIVE (Out of phase) current.
A flourescent lamp with a ballast and any appliance with a motor produce both RESISTIVE and REACTIVE currents which are both displayed in the current meter. But among this currents, only the RESISTIVE current can be sensed by the KILOWATT-HOUR meter and contributes to its actual reading as reflected in our electricity bill.
This is the reason why they only use flourescent lamp with a ballast, or a washing machine motor in their demo. Using other appliances like an incandescent lamp, TV, or Computer will not yield the same result.
ANSWER: Imagine a glass of newly poured beer almost filled to the brim. The beer occupies 2/3 of the glass, while the remaining 1/3 are just bubbles.
REAL power is represented by the BEER, while APPARENT power is represented by the BUBBLES.
This is what happens when you use a flourescent lamp with a ballast, or any appliance with a motor and you plug-in the energy saver device.
In the analogy, the flourescent lamp or motor produces both the BEER and BUBBLES, while the so-called power saver remove those bubbles but still has no effect on the actual amount of beer which represents the KILOWATT-HOUR readings.
1. Power Factor correction devices or capacitors.
2. Power reducing devices that is often dangerous to certain loads because it clips and distorts power. This result to the appliance reduced work output and just extend the time it need to produce the same amount of work. This doesn't help as electrcity bills are computed based on KIlowatts multiplied by time.