The recently-announced 8.8% tariff increase for Eskom-direct customers may sound manageable on paper, but in reality, the impact for commercial and industrial (C&I) users is far more severe. Our modelling shows that a large electricity user consuming around 1,000,000 kWh per month could see annual business electricity costs climb by roughly R2.17 million, based on the estimated consumption for typical consumers in this range.
But the headline percentage doesn’t tell the full story. The burden on businesses is not driven by energy charges alone; rising peak tariffs and time-of-use (TOU) structures are doing much of the heavy lifting, while fixed and legacy charges continue to push bills higher. Using the same parameters, our modelling shows that peak charges alone could increase by almost 60c per kWh during high-demand winter months, with a 24/7 operation potentially paying an extra R200,000 per month over that period.
This means that owning solar panels is no longer the primary lever for savings – control and flexibility are. Businesses that actively manage when they use power, where it comes from, and how it’s sourced are far better positioned to achieve energy cost reduction strategies and protect themselves against future tariff shocks.
For many businesses, a battery energy storage system (BESS) has traditionally been viewed as insurance – something you install to manage the impact of loadshedding. But today, their role has evolved to that of a financial tool, enabling electricity tariff optimisation by allowing companies to store electricity when it’s cheap and use it when it’s expensive.
Batteries allow companies to be savvy in when they use power, avoiding peak times and thus reducing exposure to the most punitive parts of the tariff structure.
While rooftop solar has its place, it’s not always viable for large energy users with space or capex constraints. This has driven increased interest in solar alternatives for businesses that don’t require asset ownership.
That’s where electricity wheeling comes in. Instead of generating power on-site, businesses can access electricity from utility-scale solar farms and receive it via the grid.
As beneficial as solar is, it is important to understand that when used in isolation, it has its limitations. It doesn’t fully cover early mornings, evenings, or winter peaks, which is exactly when tariffs are typically highest.
This is where energy trading comes into play. By combining wheeling with trading, businesses can access a broader mix of renewable energy for businesses, extending clean power into more hours of the day.
The biggest savings don’t come from any one solution – they come from how the pieces work together.
Batteries manage when you use power. Wheeling changes where it comes from. Trading diversifies how it’s produced. When combined, these three components create a green energy mix or system that is both resilient and cost-efficient, forming a more holistic and sustainable energy solution.
In short, this is where your energy strategy moves from cost-saving to risk management.
