Eskom had applied for a 32% price hike to energy regulator Nersa last year and was approved for 18.65% and 12.74% increases for the 2023/2024 and 2024/2025 financial years, respectively.
Eskom said on Friday it appreciates the approval and apologised for the extent of load-shedding.
Dawie Roodt, founder, director and chief economist at the Efficient Group, said the state should be taking on Eskom’s debt instead of citizens. He said this was another devastating blow for the economy: “The increase of more than 18% will have a huge impact on the South African economy and consumers; it will add already high levels of inflation and it might get more difficult for the Reserve Bank to bring inflation lower”.
Liz McDaid of Outa said the government is not doing enough to get renewable energy on board and South Africa needs a more forward-looking energy minister who can fast-track its implementation. She mentioned other electricity costs consumers would be paying for.
Mark Swilling, professor of sustainable development at the Centre for Sustainable Transitions at Stellenbosch University, said Nersa had resisted Eskom increases for many years and as a result the pressure has mounted to Eskom debt crisis.
The power utility is rolling out stage 6 load-shedding.
LISTEN | Eskom unburdening its debt on citizens: experts
‘Eskom is being privatised at a huge cost’
Image: 123RF / beercrafter
Amid rising costs, South Africans will have to dig deeper and pay at least 18.65% more for electricity while not receiving more power. Experts gave a breakdown and their input.
Listen:
Eskom had applied for a 32% price hike to energy regulator Nersa last year and was approved for 18.65% and 12.74% increases for the 2023/2024 and 2024/2025 financial years, respectively.
Eskom said on Friday it appreciates the approval and apologised for the extent of load-shedding.
Dawie Roodt, founder, director and chief economist at the Efficient Group, said the state should be taking on Eskom’s debt instead of citizens. He said this was another devastating blow for the economy: “The increase of more than 18% will have a huge impact on the South African economy and consumers; it will add already high levels of inflation and it might get more difficult for the Reserve Bank to bring inflation lower”.
Liz McDaid of Outa said the government is not doing enough to get renewable energy on board and South Africa needs a more forward-looking energy minister who can fast-track its implementation. She mentioned other electricity costs consumers would be paying for.
Mark Swilling, professor of sustainable development at the Centre for Sustainable Transitions at Stellenbosch University, said Nersa had resisted Eskom increases for many years and as a result the pressure has mounted to Eskom debt crisis.
The power utility is rolling out stage 6 load-shedding.
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