Energy Partners – Electricity Cost Will Continuously Hike Until 2022


In a publication headlined – “We Want Tariff Hiked As We’ve Lost Almost R12 Billion To Lower Demand Of Electricity“, it was made known that Eskom wants a 16 percent tariff increase. Here’s what you weren’t told – If Eskom were to get their proposed tariff increase, we’ll be increasingly paying more and more for electricity for a very long, long time. Electricity cost will ultimately, be a pain in our butts.

Energy Partners according to reports has warned that prices will not stabilize anytime soon if Eskom has its way in the remaining two days of hearings into their proposed hike in electricity cost.

Read Also: Eskom Disconnects Five Municipalities From Power Supply

Warning that it will be one of the many exorbitant tariff increases expected to stay un-stabilized until 2022, Mila Loubser, Head of Energy Reporting at Energy Partners, stated thus;

…the electricity cost for the average South African household will increase from R13 509 per annum to R15 696 in one year’s time, R25 206 in 5 years’ time and R30 360 in 8 years’ time. This will mean a cumulative increase by 93 percent over an eight year period.

While it was explained that a yearly hike of about 13 percent is anticipated until 2019, after-which the increases are expected to drop to 8 percent a year, it was as well highlighted that “the power situation in South Africa will only fully stabilize by 2022 when a reliable energy supply and standard increases can be expected to be established once more.”

As reported, the forecast was made with regards to Eskom’s 2015 submission of an application for price increase of 25.3 percent as a selective re-opener of Nersa’s third multi-year price determination.

According to Loubser, the “application was rejected in June 2015, due to significantly overstated costs and a lack of credible long-term planning and certainty. In light of this rejection, Eskom will have to borrow funds in order to close the funding gap of R200 billion up to 2018.”

See Also: Eskom Slams The DA With A Criminal Charge