The National Energy Regulator of South Africa (Nersa) has rejected Eskom’s application to increase its tariffs with, respectively, 36,15%, 11,81% and 9,1% over the next three financial years.
It approved increases of 12,74%, 5,36% and 6,19% instead. Although the slightly lower tariff hike is welcomed, consumers will still pay the price. This year’s increase is more than three times the inflation rate.
The dilemma in which Eskom finds itself is the result of the high costs related to its operations and servicing its debt, while independent power generation becomes cheaper by the day.
Consequently, Eskom is increasingly losing paying consumers, but still has to shoulder the responsibility of supplying the base-load to the grid and power to those who are unable to install their own systems.
The FF Plus wants to encourage individual consumers and communities to join hands and install alternative power generation systems.
The problems within Eskom, including damage to the state enterprise by employees’ criminal conduct, are apparently still present. It is not sustainable over the long term and consumers should do all they can to become less dependent on Eskom.
