The impact of electricity crises on the consumption behaviour of small and medium enterprises

Abstract

Small and medium enterprises (SMEs) will play a key role in future economic and social strategies in South Africa. However, we find that SMEs are par-ticularly vulnerable to shocks in their external envi-ronment due to a general lack of skills and resources. This is critical as the future demand for electricity in South Africa is likely to outstrip supply and electricity will become increasingly unreliable and expensive. We surveyed 250 SMEs in Cape Town and found that the prevailing policy methods of changing electricity consumption behaviour: information campaigns, increasing prices, and pro-viding rebates for energy savings, have had limited results and are unsustainable when applied to SMEs.