COMMERCIAL the tariff structure for poorer households that use less electricity. If you look at the NERSA decision, you will notice that there are different increases for different categories of customers so that, for example, the poorest households face a much lower increase than the average. In a recent article the massive theft of electricity was raised as a contributing factor to price rises, how true is this? And what is Eskom doing to stop electricity theft? Who absorbs the cost of the electricity theft? Andrew: There’s different kinds of electricity theft. There’s illegal connections, there’s metre tampering and there’s fraudulent vending machines. Because it’s illegal connections, it’s an opportunity cost in economic terms to Eskom and municipalities who provide electricity to both business and the residential sector across the country. It’s not a cost that Eskom directly pays if someone illegally connects, it’s revenue we do not get from those customers. Eskom has Operation Khanyisa to try and combat electricity theft and works with law enforcement agencies to prosecute any individuals involved in electricity theft. In which other ways can businesses and households alike cut consumption and costs? Andrew: Businesses can make a huge contribution to saving electricity by adopting a few simple measures. • • • • •
The first step is to appoint an energy manager for each office building to monitor electricity usage and identify savings opportunities. Install motion sensors for meeting rooms and security lighting. Also, reduce lighting levels in parking areas to the minimum legal requirement during the day while turning off at night after the building lights have been turned off. As far as climate control is concerned, maintain a difference of not more than 10° Celcius between inside and outside building. Turn on extraction fans at around 4am to draw cold outside air through the building to cool down the structure, and close window blinds to shade rooms from direct sunlight. An important savings tip for the office is to not leave computers, copiers, printers and fax machines on standby, as they continue to use electricity even whilst on standby. www.reimag.co.za
Homeowners can save up to 10% on their electricity bills without spending a cent. • Switch off lights in unoccupied rooms. • Dress for the weather – it will help you postpone switching on a space heater. • When you do switch it on, heat only the room you are in. • Seal gaps around windows and draught-proof wall cavities throughout your home. • Warm your bed with an electric blanket for one hour; switch off when you get in. • Alternatively, use a hot water bottle to keep your bed warm. • Don’t use under-floor heating – it’s highly energy intensive. • Switch off appliances at the power point when you’ve finished using them. • Use slow cookers to prepare stews and oxtail; microwaves are best for small-volume winter meals. • Boil only enough water for the number of cups of hot drinks you are preparing. • Shower; don’t bathe – keep it hot and short. • Limit filtering your pool to only once every 24 hours in winter. Where will renewable energy go over the next few years in both business and households? Andrew: Showcasing and demonstrating the potential of solar energy is crucial to shifting mindsets and driving wider spread adoption of renewable energy, as it is a relatively uncharted field in South Africa. The a commercial setting, depending on the electricity tariff and the type of solar PV panels installed the payback period is around nine years. Since the approval of the pilot solar PV project and the inclusion of renewable energy solutions as part of the IDM programme 47 project proposal have been submitted, of which 2 have been contracted and are currently in implementation. The project proposals have been received from all business sectors which includes; 26 commercial , 12 agricultural and 9 industrial and mining proposals. The Lincoln on Lake Project, a mix-use commercial building in Umhlanga Ridge KZN, was implemented in 2011 as a “proof of concept” project in partnership Eskom, Suntech, Hudu Solar and Growthpoint Properties. The project consisted of 234PV solar panels to generate about 238kWh of electricity per day, to meet the energy
requirements. Growthpoint Properties has since been awarded a 4-star Green Star SA rating building (one of just a few in SA), while small scale renewable has be included by National Energy Regulator of South Africa as part of the Eskom IDM business rebate programme. Eskom Holdings has also embarked on the solar PV journey by installing PV solution for traffic lights and building requirements at the head office MegaWatt Park and two power stations. On the residential side, the Eskom IDM offer does not include solar PV system, only solar thermal system. The rebate programme has provided an incentive for the installation of solar water heating systems; the programme reduces homeowners’ capital outlay when replacing energy intensive electrical element geysers with solar water heating systems. In the case of high-pressure solar water heating systems, less than 200 units per month were installed at inception of the programme; this number has since jumped to a peak of over 6000 units per month. The installation of low-pressure solar water heating systems developed into a mass-roll programme due to the fact that the rebate covered most of the installation costs. In total for both LP and HP, over 329 000 units have been installed to date. It is important to note that the rebate programme on low-pressure solar water heating systems has ended; no new registrations were accepted beyond Thursday, 28 February 2013 and all approved installations must be completed by Friday, 31 May 2013. The high pressure solar water heating rebate was based on: • local manufactured systems received a high rebate value • the electricity saving performance of the system (Q-factor); • the system needs to be SABS-approved • the household needs to purchase the system from an accredited supplier participating in the Eskom solar water heating programme and registered on the Eskom IDM database www.eskom.co.za/idm.
RESOURCES
IDM, Eskom
May 2013 SA Real Estate Investor
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