Conclusion for electricity
Answers
Answer:
Effective shifting of electricity demand from peak periods to off-peak periods may mean:
Less impact on the environment with the avoidance of new plant and related transmission lines. Reduction of electricity demand through the use of more efficient equipment will mean a reduction in the burning of fuel for the generation of electricity, thereby minimizing the emission of pollutants into the atmosphere.
If the entire community uses energy efficient appliances and installations, such as energy efficient lighting and air-conditioning systems, both the demand for electricity and the user's electricity bill will come down.
In generating less electricity, less fuel will be burned. DSM could therefore reduce the upward pressure on tariffs by minimizing the need for new power plants in the long term and help protect the environment by burning less fuel for electricity generation.
In the short term however, tariffs of the customer sectors that can participate in the power companies' DSM rebate programmes will increase slightly to fund the implementation of DSM programmes.
Benefits
The Power Companies
Effective implementation of Demand side Management costs less than building and operating new power plants to meet peaks in electricity demand. Spending less money on power plants helps to lower operation costs for the power companies, in turn reducing upward pressure on electricity tariffs over time.
The Government
An effective energy policy is an important element of any economic plan. The oil crisis in the 1970s woke governments to the dangers of the uncontrolled and unplanned use of energy. The sudden rise in oil prices gave many places the incentive to look at tariffs and other means of depressing demand. It is therefore in the interest of the Government to see that electricity is used efficiently and that the people have access to steady and reliable electricity supplies.
Consumers
Consumers benefit from lower electricity cost when the power companies are in a position to control capital expenditure more effectively. This also benefits the economy as the energy cost component of exports is minimized. Through better awareness of energy use, consumers are able to manage their electricity consumption behaviour to reduce electricity bills.