Gas demand rises in wake of load shedding

The rolling electricity blackouts have pushed people to rely on gas for cooking. FILE PICTURE

The rolling electricity blackouts have pushed people to rely on gas for cooking. FILE PICTURE

Published Feb 5, 2023

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With load shedding taking its toll on households and businesses, gas suppliers and retailers are cashing in on the surge for non-electrical products to keep the lights on and for cooking.

Regarded as one of the components of South Africa's energy mix, gas demand has seen a spike over the past year, according to one supplier.

PayGas CEO and co-founder Philippe Hoeblich said in 2022 the company sold more than 600 tons of liquefied petroleum gas due to the demand.

"People are looking for alternatives to electricity as we continue to experience load shedding. The demand rose sharply when we hit stages 4, 5 and 6 because people wanted to continue with their lives and still be able to cook meals for their families," said Hoeblich.

After the company had piloted with only one business in Delft in 2019, there were now four  businesses in Cape Town, including Nyanga and Philippi, as well as in Soweto, Kagiso, Tshepisong and Reiger Park in Gauteng.

Another business was being piloted in Enkangala, Mpumalanga.

“There’s a huge demand for gas out there. Although our core market is households, small businesses in the townships such as shisanyama and restaurants have also started to buy more,” said Hoeblich, adding that the demand had accelerated energy inclusion for tens of thousands of low-income households.

Launched in Delft in April 2019, the Pay As you Gas concept has now ignited the interest of customers who can now buy liquefied petroleum gas, simply known as gas, at a cheap price, starting from as little as R20.

One of the large retailers also reported an increase in sales of gas and solar energy products over the past three years.

Game vice-president André Steyn said the retailer had seen a significant increase in interest in gas stoves and products as more South Africans looked to get off the grid  in the face of a looming electricity rate hike and the ongoing load shedding.

Between November and mid-January, the retailer reported a 43% sales increase in gas stoves and a 63% sales increase in 9kg gas cylinders.

“There has been a definite increase in the demand for affordable solutions for load shedding.  In November, December and January to date, we have seen a 101% increase in the amount of generators sold and a 311% increase in the number of inverters sold.”

In response to the energy crisis, the retailer added inverters and power cubes to its range in June 2022, and Steyn said the response from customers had been good.

“We find that this is a solution enjoyed by customers who live in apartments or townhouses. Our current top selling items that are helping South Africans through load shedding are rechargeable lanterns,  generators as well as surge adaptors,” Steyn added.

A gas supplier based in Gugulethu also reported an increase in sales , saying he was now receiving orders from other areas including Nyanga, Philippi and Montana.

“I am now seeing a higher demand than I would usually get in months associated with festivities where most events are held,” said Mzoli Mrubata.

Mrubata said most of the new customers had bought gas stoves when Eskom implemented stages 5 and 6 load shedding.

He also anticipated the demand to rise in winter as a result of an increase in electricity tariffs.

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