Powering ahead to energy solutions

Cape Times 17 July 2012.

ESKOM’S announcement that it wants to sell electricity for 98 cents a unit in five years, probably means that retail prices will rise to between R2 and R3 a unit for most customers, if municipal distribution costs and mark-ups follow present patterns. And at those prices business and consumers will have to do some radical rethinking to survive.

(Editorial note: I think we can expect NERSA to start pressuring the municipalities to limit their electricity tariff increases to Eskom’s absolute increases rather than just slapping on the full Eskom percentage increase. so if Eskom’s tariff to a municipality goes up by R0.10/kWh, say 15%,  then the municipality’s increase to its consumers should also go up by not more than R0.10’kWh, which at present would be about 8%. Of course, this would mean that the municipalities would have to look elsewhere for their revenue increases and this would probably be from rates increases or other levies, perhaps related more directly to services.)