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Johannesburg - The next round of steep electricity tariff increases that comes into force on Friday – as well as a hefty fuel price increase to be announced then – will certainly be no April Fool’s joke for millions of South African consumers.
Consumers who buy electricity directly from Eskom will pay 25.8% more for their power from Friday April 1.
At the same time the latest estimate is that the petrol price could be hiked by at least 48c/litre in April and the diesel price by at least 63c. The announcement on the fuel price adjustment, which takes effect on the first Wednesday of each month, is expected on Friday.
In the past month oil prices have climbed to around $115/barrel amid protracted political unrest in Libya and other oil-producing countries in the Middle East.
Calculations based on the latest figures from the Department of Energy indicate that on April 7 the petrol price could rise by 30c and that of diesel by 45c if the rand/dollar exchange rate and international fuel prices remain stable for the rest of the week.
But the annual fuel levy increase also comes into effect in April. The general fuel levy will be 10c/litre up and the Road Accident Fund levy 8c/litre up. This could push the price of 95-octane petrol up to R9.90/litre in Gauteng, and at the coast up to R9.66, reminding one of the steep hikes in 2008 when the oil price shot up to $147/barrel and South African fuel prices soared to more than R10/litre.
Eskom’s latest price increase is the second of three successive ones approved by the National Energy Regulator in 2009.
Consumers can expect a third big increase – 25.9% – next year.
Eskom spokesperson Hilary Joffe said the increase would affect just over four million consumers’ pockets.
Other consumers receive their electricity from municipalities, and their increases will be implemented only from July 1, she said.
Eskom would also charge the municipalities the higher tariff only from July 1. The difference in timing is owing to financial year-ends and legislation affecting municipalities.
She said the increases were necessary to support Eskom’s construction programme. The utility was busy with a capital expenditure programme of more than R300bn and had for three years sought electricity tariffs that were more reflective of costs.
The new increases would bring Eskom’s tariffs more in line with what they should be, she explained.
Joffe said poorer consumers were protected by the fact that increases would be based on levels of electricity consumption.
These were referred to as “rising block tariffs”, she said. The greater the amount of electricity consumed, the more a consumer would pay for it.
- Sake24
For business news in Afrikaans, go to Sake24.com.
Consumers who buy electricity directly from Eskom will pay 25.8% more for their power from Friday April 1.
At the same time the latest estimate is that the petrol price could be hiked by at least 48c/litre in April and the diesel price by at least 63c. The announcement on the fuel price adjustment, which takes effect on the first Wednesday of each month, is expected on Friday.
In the past month oil prices have climbed to around $115/barrel amid protracted political unrest in Libya and other oil-producing countries in the Middle East.
Calculations based on the latest figures from the Department of Energy indicate that on April 7 the petrol price could rise by 30c and that of diesel by 45c if the rand/dollar exchange rate and international fuel prices remain stable for the rest of the week.
But the annual fuel levy increase also comes into effect in April. The general fuel levy will be 10c/litre up and the Road Accident Fund levy 8c/litre up. This could push the price of 95-octane petrol up to R9.90/litre in Gauteng, and at the coast up to R9.66, reminding one of the steep hikes in 2008 when the oil price shot up to $147/barrel and South African fuel prices soared to more than R10/litre.
Eskom’s latest price increase is the second of three successive ones approved by the National Energy Regulator in 2009.
Consumers can expect a third big increase – 25.9% – next year.
Eskom spokesperson Hilary Joffe said the increase would affect just over four million consumers’ pockets.
Other consumers receive their electricity from municipalities, and their increases will be implemented only from July 1, she said.
Eskom would also charge the municipalities the higher tariff only from July 1. The difference in timing is owing to financial year-ends and legislation affecting municipalities.
She said the increases were necessary to support Eskom’s construction programme. The utility was busy with a capital expenditure programme of more than R300bn and had for three years sought electricity tariffs that were more reflective of costs.
The new increases would bring Eskom’s tariffs more in line with what they should be, she explained.
Joffe said poorer consumers were protected by the fact that increases would be based on levels of electricity consumption.
These were referred to as “rising block tariffs”, she said. The greater the amount of electricity consumed, the more a consumer would pay for it.
- Sake24
For business news in Afrikaans, go to Sake24.com.
