A large building is taking $3-$phase supply from utility at LV i$.$e$.400$ V $.$ After adding capacitors at the intake point of the electrical installation and the power factor at the intake point has been improved from $0\mathrm{.}6$ lag to $0\mathrm{.}9$ lag. As a result, the electrical distribution loss in the building is reduced approximately by:

$($a$)0\%$

$($b$)10\%$

$($c$)20\%$

$($d$)30\%$

There are two answers on Chegg, one answer is $($a$)$ whereby the power factor improvement is $0\%$ as the arguement is that the capacitors should be installed at the load side $($where the ohm losses would be reduced$)$ while another answer is $($d$)$ whereby it is solved using the power triangle. However my understanding is that installing capacitor banks at $($e$.$g$.$ the substation or upstream$)$ would still improve the supply system efficiency by reducing the power losses. But the formula for peak power loss $(3$phase$)=3*$I$^2*$R$,$ the answer that i see for D is that are solving it in terms of Q reduced and now P loss reduced $($which has an I$^2)$ component in it$.$ Please help