Guiding consumers since 2009

Electricity prices could increase by 14.6 percent

By Staff Writer

South Africans’ hopes for an energy price hike respite were dashed last week when a report leaked to the press revealed that South African power utility Eskom, could hike electricity prices by 14.6 percent if its application is approved. 


Consumers could also see an even greater electricity price hike of 19 percent if the government introduces a carbon tax or builds new power plants beyond those that are already under construction.


Mike Schüssler, economist and founder of Economists.co.za said: “I cannot predict whether they will go ahead as that will be for NERSA to decide. The average person in the municipality is already paying over R1,000 a month if you take into consideration all the charges. However, Eskom is not as expensive. Every 15 percent increase is going to add around R180,000 making it R1,200 that the average household will pay for its lights per month.”


The Business Day said Eskom declined on Sunday to confirm a report that it proposed to raise energy prices by 14.6 percent over five years. The paper said CEO Brian Dame is quoted as saying that Eskom needs just over R1 trillion over a five year period.


Businesses, particularly those in the mining sector, have also suffered under the severe strain of energy hikes with some having to close their doors. Back in 2010, Eskom was granted an annual average increase of 25 percent. However, the tariff for 2012 was reduced to 16 percent after the government stepped in.


For electricity saving tips and advice on how to cut back on expenses and create a savings plan go to 8 Ways to save more money.

Recent Articles

Featured Part 3: Debt rehabilitation explained

In the third part of our Debt-ucate series we explore which debt rehabilitation solutions are available, and what they entail.

What impact does compound interest have on your savings and debt?

Interest plays a big role in your savings and debt. It determines how much you’ll receive for keeping your money in the bank and it also determines how much you’re going to pay your creditors. But what power does compound interest have on your finances?

Times are tough, but keep your debt under control

While the whole world is going through a rough patch, you may also be feeling the pinch. With the country in crisis, it may be difficult to keep up with your debt instalments. However, abandoning your debt obligations is not the solution.

Debt Series Part 2: Interest rates - unpacked

In the second part of our Debt-ucate series we explore interest rates –from how to get a better rate to what influences it, and how this affects the cost of your debt.

Deals

Chartered Finance Institute Free Course

Price: Available on request
When: Daily
Where: Online

Takealot Lockdown Specials

Price: Available on site
When: Daily
Where: Online

Woolies Winter Sale

Price: Available on request
When: Daily
Where: Online