South African businesses will pay extra for electricity within the coming months, when Eskom implements its anticipated winter rates between June and August, on top of\u00a0annual price increases, says\u00a0Heather McEwan, MD of\u00a0sustainability company Rhino Group.<\/p>\n
\u201cElectricity bills will rise even further in July, when the annual increase kicks in on top of the winter prices. So, after August, when the winter rates fall away, consumers will still be paying more for electricity due to the annual escalation,” she said.<\/p>\n
In February, the National Energy Regulator of South Africa (Nersa) approved a maximum 2.2% electricity tariff increase by Eskom for the 2017\/18 period, and recently capped municipal electricity tariff increases at 1.88%.<\/p>\n
\u201cIn effect, Eskom sells electricity at wholesale prices to municipalities, which in turn add their own \u2018retail mark-up\u2019 when reselling to consumers,\u201d explained McEwan, adding that municipalities had until the deadline of 1 June\u00a0to contest the decision.<\/p>\n
\u201cEskom could also still contest the Nersa ruling, which acts as a handbrake on spiralling energy costs. Even so, it has allowed an average annual price increase of 18.1% since 2008, and costs will continue to rise in the future.\u201d<\/p>\n
In the wake of the rising costs, business, retail and industrial users are turning to energy-saving technologies to mitigate the higher Eskom charges, said McEwan.<\/p>\n
\u201cEnergy, like labour, is now becoming a huge cost for businesses, which will impact on their bottom line. It\u2019s essential to become pro-active and have a long-term strategy in place to deal with it.\u201d<\/p>\n
While many businesses had already begun to retrofit lighting with energy-saving LED options, McEwan said lighting accounted for only 10 to 20% of the total energy load.<\/p>\n
\u201cAs a first step, companies need to undertake a full energy audit to look at the bigger picture and to see where the opportunities to reduce the electricity bill lies. Installing a voltage optimisation system, for example, could save an average of 10% of the total electricity load coming into a retail or industrial site.\u201d<\/p>\n
She noted that Eskom transferred electricity at a voltage higher than the required 220V, to accommodate for losses and fluctuations along the transmission lines.<\/p>\n
\u201cThe consumer is paying for this excess voltage, which can also cause equipment to overheat and ultimately lead to breakdowns and failure.\u201d<\/p>\n
McEwan said the plethora of products on the market could be confusing to consumers and that it was advisable to consult an energy specialist who could advise on the best quality options for a particular industrial or retail environment.<\/p>\n
\u201cYou\u2019re not going to solve your energy problem overnight \u2013 it\u2019s a strategic journey. Small, incremental changes \u2013 like coating steam pipes to prevent heat loss in a factory \u2013 can lead to significant savings over a number of years.\u201d<\/p>\n