30 June 2009
Eskom was hoping for an interim price increase of 34%, and were not far off their target: on 25 June 2009 the National Energy Regulator of South Africa (
NERSA) approved an average price increase of 31.3% for Eskom.
There are two opposing schools of thought on this. The first is that attempting to hold down electricity prices now will result in even higher prices in the near future, which was pointed out by Cape Town Public Enterprises Minister Barbara Hogan in
an article on news24.com recently. Another argument to consider is that increasing Eskom tariffs is necessary in order to sustain and build on the current infrastructure.
The flip-side of this view is clearly expressed by the
National Consumer Forum, which is “shocked and dismayed” at this decision and has labelled the move as hugely damaging to consumers and the economy as a whole. "To allow an increase of this magnitude, in the face of economic recession and public opposition across the board, is both callous and irresponsible,” said NCF chairman Thami Bolani.
Bolani also says that Eskom sells power to industry at discounted rates and has been raising the price to consumers by about 60% since the beginning of 2008. He argues that "this discrimination is unacceptable – it is unfair to expect the consumer to bear disproportionate responsibility for Eskom's expansion costs, which is what we are doing at the moment".
These are all valid points and the debate is likely to continue, however the bottom line is that the increase has been approved and consumers need to be aware of this. The increase will take effect from 01 July 2009 to 31 March 2010 and will result in an increase in average standard tariff from 25.24c/kWh to 33.14c/kWh.
