Eskom's 'overcooked' tariffs slated

2011-08-26 12:24

Johannesburg - Eskom’s “overcooked” tariff increases will negatively impact the future of the country’s economy, the Energy Intensive Users’ Group (EIUG) said on Friday.

“The next tariff increases will have adverse effects, and far-reaching implications for all South Africans,” it said.

“These price increments add additional pressure to industrial customers to just maintain current production levels, and further price increases will result in production halts and job losses.”

EIUG said primary energy costs had increased by 19.8% this year, a significant increase over last year’s 17%.

At the moment the average tariff was 50c per kilowatt hour.

The EIUG expects the tariff to settle around 75c to 80c/kWh by 2016. This means that there would be another 50% to 60% increase over the next three years.

The EIUG said it would be undertaking an industry-wide impact assessment of the electricity price path.

“We have seen a number of refineries and smelters closing down and need to determine how poor the outlook is to ensure South Africa doesn’t shed critically needed jobs.”

Eskom was not immediately available for comment.

The EIUG is a non-profit organisation that represents energy consumers across the country.


  • doktorjules - 2011-09-28 07:37

    I think our gov is so stupid to agree to these price hiking, Cut the salary of COE of Eskom and we could safe millions, no need for them to pay R500000 and there are people who are suffering,

  • RoyoF - 2011-09-28 11:08

    The problem with all of you moaners is that non of you are doing anything to save electricity. Im quite sure you would not be crying if has installed solar geysers,all light bulbs energy efficient etc. You are stuck in the past of cheep cheep power and you cant accept that things have changed . SA power is the cheapest if you consider how our power is generated coal . Its also the dirtiest . So if you want dirty cheap power thats what you have been getting.BUt its the 21st century and you need to accept that not everything is vastly availiable and everlasting . Its running out man , the air is dirtier than before and the environmental costs of coal mining are terrible .I was also shocked at my 30% escalation but its forcing me to be more energy conscience and make a saving effort instead of being a lazy SNOTKOP or a brain dead Knalpot. These people are sideline fools who havent a clue about what goes on in the real world .They think they can run the electricity companies and take over everything and everyone else is incompetent ,corrupt and stupid. News Flash : YOU are the Dum Dum in the equation.WE need to be energy efficient and thats in the production of energy too. Case in point :Brazil 75%of thats coutries energy needs are by hydro elec and solar power. Everyone there has solar panels on the roof . Its time that you woke up and face the electric shok.

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