Electricity costs rising, tips to minimise it

The National Energy Regulator of South Africa (Nersa) has confirmed that the electricity price increase for 2014/15 is seven per cent as from July 1.

Tumelot@caxton.co.za

In light of this continuing rise in energy tariffs, it is becoming increasingly important for enterprises and businessowners to ensure that every measure is taken to reduce the cost of running their companies.

Most companies run on electricity, which includes machinery, airconditioning as well as hot water.

Ekurhuleni metro spokesperson Themba Gadebe says the cost associated with energy, and specifically also electricity, has risen considerably in the last number of years.

“Electricity is a considerable input cost, which should be managed by businesses,” adds Gadebe.

Gadebe gives a few pointers that businessowners should consider to cut costs in their companies.

“Tariffs associated with small businesses are usually not complex. If your effective cent per unit exceeds R2, please contact your closest Energy Depot to advise you.”

For small businesses, Gadebe says businessowners should take note of the following:

n With hot water geysers, he says there are a few options available.

“The best will be to install a solar geyser, if the building layout allows for this. An alternative would be a heat pump, which looks much like a split airconditioner unit. Although both will be a considerable capital layout, the payback periods should be very pleasing,” he explains.

“A low cost option would be a geyser control device, controlling the time that the geyser element is on, as well as the maximum temperature of the geyser water.”

He says that old thermostats can drift, overheating the water and that 65 degrees Celsius should be more than enough in most cases in winter and 55 degrees in summer.

n He advises businesses to only use air conditioning when necessary and rather open windows instead.

“The bigger the light, the more electricity it uses. Invest in compact fluorescent lamps, and efficient fluorescent lights, remember that the thinner the tube, the better. Switch off lights where rooms are not used, or install movement detectors.

n Gas is a better option for cooking food. Convert and you will not be sorry,” advises Gadebe.

He points out that heating devices should not be left on longer than needed.

“Do not cling to older appliances, like refrigerators, etc, modern units are much more energy-efficient. So when the opportunity arises, scrap the old unit and buy a new one,” he adds.

For larger business, such as those on a demand-based tariff, Gadebe gives the following pointers:

“Tariffs associated with medium and large business are complex. If your effective cent per unit exceeds R2, please contact your closest Energy Depot to advise you. Rather opt for a time of use tariff, where units are more expensive during peak hours, and cheaper during off-peak hours,” he says.

He says businesses should obtain the services of a good load management consultant or service provider to install electrical devices which control load, effectively preventing the switch-on of chosen equipment during peak hours, etc.

“Avoid peak hours as far as is possible and keep the demand component (kVA) as low as possible with the aid of the load management device. A specialist service provider can set this up,” says Gadebe.

Gadebe points out that business owners can use the Ekurhuleni metro meter site www.meteringonline.com to manage their electricity.

“A wealth of understandable electricity information, specific to your business, is displayed by EMM, free of charge to you. EMM reads your meter every 30 minutes, and then provides this information to you.

“The information can be used to make production decisions, to understand your cost drivers, etc,” he adds.

Gadebe emphasises that businesses should get rid of old technology and replace them with modern units.

“Modern electric motors use a fraction of what older motors consume.” – @TumeloBoksburg

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