NERSA grants ESKOM a 9.4% electricity price increase for 2016

NERSA the National Energy Regulator has just approved a 9.4% tariff increase for ESKOM.  While this is less than the 16% that ESKOM applied for it is still well above the consumer price index and is likely to drive up inflation.  The increase will impact Eskom clients as of the 1st April 2016.    Municipalities now have to plan their annual electricity tariffs around the approved 9.4% and their electricity consumers will feel the effect of the increase from the 1st July 2016.

The municipal tariffs are advertised in April /May on their websites and the local press for comment.  While the 9.4% does not give municipalities much room to soften the annual increase in service tariffs, it is becoming increasingly important for consumers to become pro-active and to object to excessive increases.  Electricity underpins most service provision in our cities as well the activities in our homes and businesses.  While increasing energy efficiency is a no brainer, citizens and municipalities need to lobby for alternatives to ESKOM.  We need a range of local private /public partnerships that generate renewable energy and stimulate local green jobs.

ESKOM’s strategy of mega coal fired electricity power stations with mega – time overruns and mega capital expenditure will keep us paying increasingly higher prices – at a time when renewable energy has now reached grid parity.  The kWh charge for electricity from Medupi and Khusile is more expensive than for  new wind and solar – which do not have the climate change impacts.  The cost of political interference in electricity provision coupled with bad planning is no longer affordable.

Kim Kruyshaar 1 March 2016

email Kim@greenaudits.co.za for an energy audit,  an energy efficiency plan and to ensure that you are on the tariff best suited to your home and business.

 

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