Eskom’s bid to crank-up their electricity tariffs by half their current costs could lead to catastrophic consequences, with many South Africans facing the prospect of eventually paying “double” for their energy bills. That’s according to the Energy Expert Coalition (EEC), who have launched their bid to stop the SOE in their tracks.
How much are Eskom’s tariffs rising by?
These are the increases that were granted for Eskom’s tariffs earlier in the year:
- The price structure will change annually over the next three years: Up by 9.41% in 2020, 8.1% in 2021, and 5.2% in 2022.
- That means electricity prices will be 22.7% more expensive in three years’ time.
- This excludes the 4.41% increase over the next three years, which was already approved in 2018.
How electricirty price “could double” in South Africa
The firm, however, were seeking a 45% increase by the year 2022. This will prove be a nightmare for many consumers, who are already struggling with increases to fuel prices and the cost of living. This partial approval served as “a start” for the beleaguered power giants, and they’re willing advance their case through the courts.
Earlier this month, Eskom’s legal team made their submissions explaining why a R69 billion bailout wasn’t good enough, in an attempt to justify increasing electricity tariffs even further. But the EEC aren’t having it, and the lobby group’s senior representative Ted Blom explained why the planned price hikes could hit South Africans ‘much harder’ than advertised. They are also launching a crowdfunding project to fight Eskom in court.
“On 10 October Eskom filed claims at the high court to recover the R69-billion cash bailout it received from the government and to raise a further R40-billion by increasing electricity prices. Eskom also asked the court to review and order the authorisation of a further R34-billion through increased electricity prices.”
“If we allow Eskom to succeed, we will see a 45% jump on current tariffs. However, as the increase is over and above their annual tariff hikes, in reality, your electricity costs will double – up 100% – within two years. We must all fight against these ridiculous increases in any way we can, no matter how small.”
Meanwhile, Eskom addressed the matter during court proceedings last week:
“We have put in an application for urgent interim relief, which is necessary to avoid financial disaster for Eskom. We are seeking an order to address this shortfall in a phased manner.”
“In addition, we are seeking the court to review and set aside Nersa’s MYPD4 revenue decision and remit that decision to Nersa for reconsideration in the light of the Court’s judgment”.