Energy regulator ripped for granting Eskom 19% tariff hike

South Africans are going to have to pay 19% more for electricity from April while navigating life under continuous load shedding.

Stage 6 of the planned power cuts remained in place on Friday due to more generating unit breakdowns that have put the national grid under severe strain.

Energy expert Tshepo Kgadima says the Nersa-approved hike is two times above inflation. 

“It has brought the electricity tariffs over the last seven years to a whopping 893%. South Africa is effectively being priced out of economic competitiveness if you take into account the high electricity tariffs that we have, with the increased stages of load shedding that we continue to experience. 

“We are not in a position to attract the energy intensive industries which ordinarily would have been labour intensive as well.” 

Kgadima says Eskom needs to realise that more and more consumers are seeking alternative energy sources, posing a threat to the utility. 

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“The granting of an 18.65% tariff increase to Eskom is going to be a poisoned chalice for Eskom itself, as well will see Eskom now battling even more, as their sales will decline even more.” 

Meanwhile as South Africans absorb the news that we'll be paying Eskom 19% more for electricity from April - an economist is of the view that the power utility should be placed under business rescue.

Dawie Roodt says government needs to find ways to help the economy survive.

”It will result in the Reserve Bank keeping the interest rates relatively high, weaker economic growth, higher poverty and unemployment. The reality is that we have an electricity crisis, a management crisis, we have an Eskom which is in real deep trouble. 

“This is nothing but a national crisis.”