Electrical energy plays a vital role almost everywhere, especially those that are energyrnintensive institutions. As there are limited resources and increased cost to generaternelectricity, it is our keen duty to save resources for future use by doing research aboutrnenergy conservation, which energy audit is one to consider in different sectors such as thernone this research work is attempting. This would help the factory to be competent in thernmarket because their production cost depends on electric power.rnThis thesis presents about electrical energy audit in Brothers Flour and Biscuit Factory,rnwhich is one of the intensive energy consumer industries currently flourishing in ourrncountry. For the purpose of data analysis, a historical data regarding their energyrnconsumption and energy intensive equipmentâ€™s, such as electric motors and lightingrnsystems were collected. Countries with energy efficient Biscuit and Flour factory havernbeen selected as a benchmark to compare the energy efficiency of the factory. From therndata analysis it is found that the factory loses 31% and 22% of total energy for biscuit andrnflour respectively due to inefficient electrical energy consumption and pays a total ofrn4,320,216 ETB/year.rnModelling and simulation of the whole power distribution system based on the primaryrndata collected and one-line diagram have been done with Electrical transient analyzerrnprogram (ETAP 12.6.0) software package. Annual technical energy loss of the factoryrnpower distribution system has been investigated and its value is 1.2%. i.e. ideal loss withinrnacceptable range, which is 3-6%. But, expenditure for technical energy loss due torndistribution transformers is high in comparison to distribution cables.rnThe factory accomplishes its activities with extra and inefficient lamps and also with lowrnefficiency of electric motor due to under load operation of the motor for specificrnapplication. At the end of factoryâ€™s electrical energy audit the possible total energy savingrnpotential in KWh per year from lighting only was 338.7 MWH/year by using energyrnefficient lamps and optimizing the illumination of the existing lighting system. Hence therntotal saving in Ethiopian birr per year from lighting were 138,397.54 and their paybackrnperiod is less than 6 months. By replacing standard (low efficiency) motors with energyrnefficient motor gives 49,482 KWh/year energy saving and cost saving of $1,484 per yearrnas well as payback period of less than 10 years as analyzed by Motor Master software.