*** Eskom's set to raise electricity 20% by June…

*** Slash energy consumption by 40% AND make goverment pay...!

*** Don't fall prey to these energy "vampires"…

From the pen of Karin Iten

Dear Investment Academy Reader,

2008 was a dark year: Not only did we deal with a financial ice age, a topsy-turvy rand and the demise of some of the biggest banks in the world, but we also sat in the dark for months dealing with bi-weekly load shedding sessions.

And now, Eskom’s getting ready to do it again!

Yup, that’s right… Not only are rates increasing by about 20% from June onwards, but we’re being told that if we don’t cut back a further 10%, we’ll be fined between R2.80 and R18 for every extra kilowatt hour we use. And what’s more, we’re likely to end up in the dark over the coldest part of the year too.

This week, I’m giving you my top five tips for cutting back on your energy use by more than 10% and saving money in the process.
 

Tip 1: Save 50% by switching off

We’ve all heard the Cell C ad about how an idle – but plugged in – cell phone charger still uses electricity. But what about the other appliances we leave plugged in around the house? Many of them are fine. But then there are those “vampire appliances” we keep on “standby” mode.

Now I’m sure you’re wondering how much energy this actually uses – the answer's shocking: Standby mode uses up to 50% of the energy it takes to actually run the appliance! That means, if you keep your high definition, flat screen TV (which uses 120W) on standby for 100 hours a month, you’re paying for 12kW of power you’re not even using! At an average price of 40c per kW, you’re wasting R4.80 a month or R57.60 a year.

Now consider that you probably have your TV, DVD player and cell phone charger on standby all the time and this fairly small amount begins to add up.

Tip 2: Cut down the hours

There’s nothing nicer than lazing around the pool on the weekend. But keeping your pool sparkly and blue can be costly. On average, a pool uses around R92.80 of energy every month. By cutting your pool filters running costs by just four hours a day, you can save 40% (93kWh) of your pool’s energy use a month. That’s around R37.20.

Your tumble drier uses 3kWh every time you switch it on. So, if you’re drying three loads of washing a week, you’re using 48kWh more than you need to every month. So, next time you find yourself popping your washing in the drier, save R19.20 and hang it in the sun instead.

Speaking about drying, consider drying the dishes by hand or letting them drip dry instead of running your dishwasher’s full wash/dry cycle. On average, the drying part of the cycle lasts 30 minutes and consumes almost half of the total energy your dishwasher uses. If you use your dishwasher once a day, this quickly amounts to R42.50 a month. So, dry by hand and save R21.25.

Tip 3: A leaky tap can cost you R340 a year

Now I don’t know about you, but nothing annoys me more than a dripping tap. There’s nothing worse than hearing every cent go down the drain! If it’s the hot water tap that’s leaking, it could cost you around R340 a year – and that’s if it’s a small leak of between one to five drops a minute.

Tip 4: Keep it closed

Whether you’re cooking a roast in the oven or making soup on the stove, keeping the door/lid closed will help you not only get dinner on the table faster, but also save you up to 60% of the electricity it takes to cook a meal since that’s how much is lost when you open it. So resist the urge and you can more than half the energy you use to cook supper every night.

By the way, this goes for the fridge too. While the amount of energy the light bulb uses is nothing to worry about, keeping the door closed (and knowing what you want out of the fridge before you open it) can save you up to 30% of the energy your fridge uses.

Tip #5: Use the power of the sun

If you’re willing to splash out some money in order to save a bundle, go solar. A solar heated geyser costs around R13,500 but, these days, Eskom’s offering home owners rebates of 15% to 20% on the cost of installing solar water-heating systems. This means you can save between R1,860 and R4,900 on the cost. (Go to www.eskom.co.za for details of this programme.)

Hot water uses around 40% of an average home’s energy. Since a solar heater can save you up to 70% of the total energy used to heat your water, you’ll save about 200kWh per month (that’s R80 worth of electricity) by installing a solar heater. Although this doesn’t sound like much, if you add it up, you can cover the entire cost of the solar geyser in just seven years. 

The top three energy suckers in your home:

•    2 plate stove and over
•    Tumble drier
•    Geyser

That's all from me this today, 'till next week, here's to your financial freedom…

Karin Iten
For the Investment Academy

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