Cape Town – Eskom’s call for customers to save electricity will have a negative long-term effect on the state utility's finances, according to energy expert Chris Yelland.
Eskom has named its latest campaign “make the call to make the difference” and calls on South Africans to “live lightly” and “to use less electricity”.
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Campaign will harm Eskom - Yelland
Yelland said while Eskom has to encourage consumers to reduce usage of appliances to lessen the possibility or severity of load shedding, the campaign would ultimately harm the business over time.
“In the short term, it's one of the immediate wins that one can gain, by improving efficiency of use of electricity as well as avoiding use that is not productive,” he said.
“So yes, it can make an impact.
“But in the longer term, you know, a reduction of electricity consumption is not the solution to Eskom’s financial problems.
“In fact, it really does a lot of harm to Eskom, when its revenue decreases as it has been doing for the past several years.
“At the moment, we’re at a seven-year low in terms of electricity consumption and that is putting enormous upward price pressure.
“So, we’re seeing at Eskom a combination of increasing costs and decreasing sales volumes, which has a very negative impact on cash flow and on the financial needs of Eskom.
“Really, we need to start increasing electricity consumption through productive use of electricity and that is the solution to the economy and the economic needs of South Africa.
“Not aggressive cut back and cut back, to the extent that new economic projects, big business projects and industrial projects are deferred or put on the back burner or even cancelled.”
Eskom’s campaign says customers should “reduce... electricity usage throughout the day”, with these tips:
• Switch off your geyser and pool pump when not in use – never run both at the same time;
• Adjust air-conditioning to 23°C or rather use fans; and
• Switch off non-essential lights and appliances.
* Be a part of the load shedding survival guide. Tell us how your business or household is responding to the power crisis or share ideas that could stimulate action.
The infographic below supplied by Eskom shows the amount of electricity various household appliances use:
Source: Eskom