CBI-electric (Circuit Breaker Industries)

South African households are bracing for another wave of electricity cost increases, with NERSA approving hikes of 18.36% over the next two years. It’s tempting to think that swapping to energy-efficient appliances will automatically reduce your bill, but the savings may not be as high as expected.

Drawing on his extensive industry experience, Dr Andrew Dickson, Engineering Executive at CBi-electric: low voltage, says that while replacing old appliances with A++ rated alternatives should logically reduce bills, the expected drop in monthly costs frequently fails to materialise.

To illustrate, he points to lighting in a typical home. “Where a room once relied on a single 60W globe, a modern setup might feature 20 downlights. Even with efficient 5W globes, the total load rises to 100W. Efficiency gains are real, but increased usage often outpaces them.”

The Paradox of Efficiency

This is the “Jevons Paradox” - when efficiency makes something cheaper or easier to use, people often end up using more of it, cancelling out the expected savings. And it is not unique to South Africa. History shows that efficiency has never reduced total demand on its own. Dr Dickson points to data from the UK spanning a 200-year period: as lighting technologies evolved and have become 3,000 times cheaper per lumen, consumption didn't drop. Instead, it skyrocketed, with people using 6,000 times more light.

Global research shows this trend continues today. In China, families lost two-thirds of expected energy savings from efficient air conditioners because they ran them for longer. In Germany, 15% of households left energy-saving bulbs switched on longer than the old ones they replaced.

From Passive Saving to Active Management

Dr Dickson says the key is shifting from passive saving (simply buying a better appliance) to active management (monitoring and controlling how electricity is used). “Efficiency alone isn’t enough. Households can reclaim real savings by paying attention to behaviour. Simple actions like switching off appliances on standby, avoiding running devices longer than necessary, or using timers to manage peak usage can make a big difference.”

He adds that technology can support these habits. “Wi-Fi-enabled meters and apps can provide real-time insight into electricity consumption, helping households spot spikes and understand exactly where energy is being lost.”

Active management also exposes hidden costs that efficient appliances alone can’t fix, such as ‘phantom loads’ - devices drawing power even when switched off. These devices are always connected and “ON”, so effectively draw power 24/7. These invisible drains can account for up to 5–10% of home energy usage, or up to R1,800 a year on electricity that isn't actually being used.

“Efficient appliances are still important,” concludes Dr Dickson. “But the most effective way to cut costs is by actively managing how and when electricity is used. By combining simple behavioural changes with tools like smart meters, households can finally see the savings they expect.”

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