Page 12 - Issue 2 2023

VIEWS AND OPINION

How to help your business survive

spiralling electricity costs

By Roger Hislop, CBI energy

ll indicators point to 2023 being yet another year that South Africans will
be required to operate in the face of a very challenging energy-constrained
Aenvironment. Additionally, spiralling energy costs will drive an immediate cash
flow crunch for businesses, and surging inflation is going to cause a spending slowdown.
It’s time to batten down the hatches and have a plan. Whether this is saving electricity,
using it more smartly, or generating its own, SA business has to have a plan now, before
the crunch hits.
South Africans are understandably shocked by the unprecedented tariff increases
that Nersa has approved, with an 18,65% increase set to take place from April 2023, and
another 12,74% confirmed for next year.
This will result in a 34% increase in just over a year. This is going to lead to inevitable
price increases on everything, driving inflation way past the current 6 to 7% which is
already crippling growth and job creation.
In addition to this, most municipalities with distribution licenses will also add a higher
mark-up, meaning that come the beginning of April, South Africans may expect to see
an increase of 22% or more on their utility bills, depending on who their local supplier Roger Hislop
is. These huge cost increases, together with continued low reliability of energy supply,
are going to not only strengthen the case for installing solar and battery storage, but also 8. Implement Small-Scale Embedded
clearly show that private generation is only half the solution: everyone needs automated Generation (SSEG): SSEG is
energy management and load control systems to reduce wasted consumption and generally either a generator set or
optimise power availability. a solar PV system. Generators are a
useful stopgap, but their energy is
Here are ten tips to help them take control of their energy costs: very expensive. The price of solar
1. Understand your bills: A large number of business owners are unclear on what they’re systems is falling, although ongoing
paying for, such as ‘time of use’ tariffs and Notified Maximum Demand penalties. If demand tends to keep costs high,
you comprehend these, then some simple behaviour changes you make could take 20 so shop around and make sure
to 30% off your business’ electricity bill. that you’re talking to an installer
2. Check your bills: Install managed smart meters behind your utility meter to confirm with strong credentials and a solid
you’re being billed correctly. You’ll also be able to see what your daily consumption (referenceable) track record.
trend is to identify runaway usage before you get a month-end bill-shock. 9. Apply load management to your
3. Measure, measure, measure: Put managed smart meters on key distribution boards SSEG: By managing your loads by
or large loads to understand where and when electricity is consumed. means of even a basic Building
4. Energy design: Determine which parts of your business are energy-critical, such Energy Management system, you
as IT infrastructure, production machines, knowledge workers’ computers and can reduce the size of the inverter
communications systems. Prioritise these electricity consumers and plan for energy and batteries you need, while also
resiliency according to priority. ensuring that it is not tripped by
5. Schedule your loads: Just putting bigger loads on an automated schedule can easily overloading. Don’t waste sunlight by
save 10% of bills. Air conditioners, geysers and hydroboils don’t need to be on at starting the day with full batteries.
night. Most office lighting can be switched off too. Basic dumb timers can do the job, 10. Consider the impact of energy
although a better option is centrally managed load controllers that let you quickly security on your business: Electricity
adapt to changing conditions. costs come directly off the bottom
6. ‘Just when required’: Don’t leave anything running unless it’s needed. Install load line, but reduced productivity,
controllers on your meeting room air conditioners, for example. This, combined with a damage to equipment or machines
room occupancy sensor, would help you consume power only when necessary. and not being reliably open for
7. Manage your physical environment: Use less electric lighting and more natural business all have a more serious
lighting, install draught-doors to reduce your heating and cooling costs. negative impact.

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