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What Is Causing Electricity to Increase in South Africa

Eskom had campaigned for a 20.5% rate increase for the fiscal year 2023, claiming that the increase is required to keep the company running.

 

The power utility stated that the increase was influenced in part by purchases from independent power producers (IPPs) and carbon fees, both of which are beyond of Eskom’s direct control. According to the report, these two expenditures account for approximately 13.8% of the requested increase.

 

The company has also stated that it intends to request a further 15.07% hike in 2024 and a 10% increase in 2025. However, this will be dependent on the actual rise granted to Eskom by Nersa this year, as the regulator rarely awards the power utility the full amount requested.

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Nersa authorized a 15.06% increase for Eskom’s direct consumers on March 5, 2021, which went into effect on April 1, 2021. On July 1, 2021, municipalities saw a 17.80% increase.

 

In addition to the anticipated rate hike, Eskom stated that it is still reliant on more equity support from the government to remain a going concern.

 

Why are South African electricity rates rising?

Tariffs levied by Eskom on its customers, including municipalities, are a significant contributor to electricity rates in South Africa. According to data from Eskom’s tariff books, energy price rises were generally lower than average consumer inflation between 1994 and 1999.

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How much will Eskom raise in 2022?

It amended this to 62% in January 2022 and now considers that 59% is a more realistic prediction. The second source of increased cost is the procurement of energy from independent power producers (IPPs).

 

In South Africa, how much electricity does a house use per day?

The average South African household consumes approximately 900 kWh per month. That works out to 30 kWh per day or 1.25 kWh every hour.

 

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