Tuesday, September 28, 2010

One clear reason why the Energy Intensive User Group does not have South Africa's interest at heart

The South African Energy Efficiency Association should know better than to publish a pro big-energy business article like this one from the Energy Intensive User Group. The article claims to be unpacking the fallacies around the so called “secret deals”, but is in fact a defence of the tariff structure that favours them.

Let me start out by saying that the cheapest form of new generation is energy efficiency – thus if we reduce consumption, we can make that power saved available to other consumers. New build drives up the price of electricity, where as saving adds to the bottom line of business (and increases GDP). Thus saving energy will generally always be to the good of the country

But one of the more fascinating lines in this article says the following: “Note that if large users consume less or do not expand, there will be less levies recovered from them which means smaller users will have to pay even higher prices.” What???? Is the organisation that is promoting Energy Efficiency actually saying that large consumers should consume MORE i.e. NOT become energy efficient? This is ludicrous, and underlines the weak influence that the Energy Efficiency lobby has on government and industry.

In addition, the following is argued:

· Large residential users (>600kWh) are now cross-subsidising the poor (i.e. low consumers). This certainly does not encourage government to help such residential over-consumers reduce consumption; in fact they may encourage it.

· That “it is a fact” that “long-term and stable consumers are actually subsidising the smaller unpredictable consumers”. TO what extent? The smaller consumers only use a fraction of our electricity. The largest 138 customers consume nearly 40% of the energy, and largest 40 000 customers 75%. Residential consumption is 4% of sales and 10% of revenue! So who is profiting off who?

Energy efficiency should be at the heart of our energy policy. But it is not – policy is still ruled by big energy intensive business.

Frank

1 comment:

DaGumpf said...

From the SAEE:

Dear Frank,
How wonderful to receive our first reply from an eeeNews reader. It is always heartwarming to find persons so passionate about what they believe in.
I could email you pages counter-arguing or agreeing with the statements you made, so too could I easily do the same with the Energy Intensive User Group’s statements and views. However, the aim of the eeeNews is to provide a platform to communicate what is happening, or not happening, in the energy efficiency arena, both locally and abroad. It would be inappropriate for us to take on the role of judge as to what statements are correct, or incorrect, and which organization to support and which ones not to support. The views expressed in the newsletter are not necessarily those of the editorial team who compile the newsletter.
Although this industry is seen as the fastest growing industry in most countries, it will remain in its infancy for quite some time still, which is why organizations such as the SAEE are so vital to South Africa’s energy efficiency industry. It provides opportunities to communicate information regarding energy efficiency to ALL users of energy and brings together the various parties with this common interest. But persons don’t join ‘parties’ just to listen, they need to be heard as well, whether we agree with what they are saying or not. These big users are the ones that need to join ‘the common interest parties’ so that they can become informed, which is ultimately why their view was published– to get them involved, AND to get you as a reader to read eeeNews instead of discarding the email.
Yours sincerely,
Yolanda de Lange