South Africa's energy regulator has given Eskom the go-ahead to hike electricity prices by 9.4% for 2016-17.

The National Energy Regulator (Nersa) approved a 9.4% electricity hike for 2016-17 on March 2016. Eskom submitted an application to Nersa in November last year to recover R22.8-billion, which the utility said it used to avert load-shedding.

Read the full Nersa article by clicking here


The ongoing challenges in the South African market place has and continues to impact manufacturers. 

Electricity prices in South Africa have almost quadrupled since 2007, when the country first had power shortages. Scheduled supply cuts took place almost once every two days on average in the first half of 2015. Businesses are finding it hard to absorb costs and for some industries the cumulative impact of lower oil prices has and continues to create further financial pressures.

When it comes to energy intensive industries a major focus on the efficient use of plant, equipment and processes become critical to lowering operating costs. Whether it's reducing water consumption, air, gases or fuels, electrical power or process steam doing so without compromising product quality is paramount when investing in energy management.

A 5-8% reduction in energy consumption can be achieved through the effective design, implementation and management of an Energy Management Information System (EMIS), part of a plant's Energy Management System (EMS).

Management systems and procedures together with the use of automation technologies offers sustainable benefits over the longer term, 

Emerson has and continues to help clients across the globe to;

  • lower operating and production costs
  • improve their competitive position
  • reduce greenhouse gas emissions
  • increase operational efficiency

Combustion fired equipment is just one example where major savings can be achieved. When Emerson's Industrial Energy consultants worked together with an agricultural chemicals manufacturer to optimize the use of waste gas in their boilers by using Emerson's Smart process boiler application the results reduced annual natural gas consumption by 1,000,000 MMBTU and a 30% annual reduction in Co2 emissions; with the boilers operating within emissions, fuel mix and equipment constraints.

Watch Scott Pettigrew, Emerson's Senior Industrial Energy discuss the Smart process boiler application. Click here to watch the video.

When we visited South Africa together with our local business partner back in 2015 to deliver a series of best practice workshops with Scott Pettigrew it was obvious then that energy was a growing issue for manufactures. With the new price hikes it becomes even more important to industries to focus on Industrial Energy Management.

Sam Thiara (MEng)

Business Development Manager, EMEA

Operational Certainty Consulting Group

 M +44 (0) 7825 862 808