Sudáfrica : August 12, 2008

The National Energy Regulator of South Africa or NERSA decided late in June to allow Eskom, the country’s principal electricity generator and distributor, to recover additional primary energy costs totaling R 2.827 billion through their electricity consumer tariffs. The approval amounts to a 13.3 percent increase in electricity rates. This increase is on top of the 14.2 increase approved at the end of December 2007 – a massive 27.5 percent increase in electricity costs over the past 8 months!

Electricity consumers have never witnessed such a steep rise in pricing in such a relatively short space of time. These increases together with the vast rise in food and fuel costs as well as hikes in interest rates leads to the public’s finances and wellbeing suffering tremendously. Suppliers may well forget about outstanding payments of water and light bills as home repossessions are becoming the big issue in the face of today’s tough economic times.

In summary, Eskom’s latest (and overall) price hike will hurt consumers in a way that is not completely understood by them or NERSA at this mention. It is also important to point out the electricity price hikes will also adversely affect Municipal consumers who will have to struggle with a 35 percent or more increase this year as local Councils purchase wholesale electricity from Eskom and resell it at a profit for their own financial wellness.