• Change of culture needed

    The right leadership will help SA shed its culture of violence, says Mandi Smallhorne.

  • 10 tips to find bargains

    Susan Erasmus gives advice on how bargain hunters can get the most bang for their buck.

  • Inside Labour

    Labour's bitter breaches need to be seen in historical context, says Terry Bell.

Loading...
See More

Business warned of power tariff spike

Jan 12 2011 12:54 I-Net Bridge

Related Articles

Anglo: SA needs more private power

Eskom warns of tight power supply

SA to get six new power plants

IPPs key to SA growth

Local power a 'time bomb'

Power supply still in crisis

 
Johannesburg - Energy services company Manoa said on Wednesday that South African businesses should prepare for a series of steep electricity tariff hikes, which are expected to continue until at least 2015.

"According to the department of energy's latest integrated resource plan (IRP), which details the country's long-term energy generation and usage prospects, the price increases will be used to help fund urgently needed electricity generation projects worth many billions of rand," said Manoa.

The IRP's scenario planning assumes that business and South Africans in general will become vastly more energy efficient over the next short while, MaNoa's Esmé Bluff said.

"However, if this is not the case, the power cuts we're expecting to begin from next year (and run up until 2016) will be far worse than even the medium-term risk mitigation plan suggests."

She added that companies needed to be aware of the risk this presented and should be prepared.

Although Bluff lauded the drafter of the IRP for consulting with a broad range of stakeholders for the first time, she said she was concerned that the plan, which was thorough in many ways, might be underestimating the extent of the energy crisis.

"The wisest course of action would be for business to immediately start planning for its own power supply in the face of serious power shortages."

Bluff said that, according to the IRP, electricity prices would more than double over the next 20 years.

"The price increase will be quite steep until around 2014-15 - as high as 25% - in order to fund the capital outlay required for increasing SA's electricity generation capabilities," she said.

"After that, the increases are expected to taper somewhat."

energy crisis  |  businesses  |  electricity supply  |  power

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
6 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

Brought to you by BizNews

More from BizNews

We're talking about:

SMALL BUSINESS

Johannesburg has been selected to host the Global Entrepreneurship Congress in 2017. "[The congress] will ensure that small business development remains firmly on the national agenda and the radar screen of all stakeholders, the Small Business Development minister said.
 
 

Top 10 richest musicians of all time

Check out the gallery to find out who they are!

 
 

Luxury living

10 of the most expensive things that will leave your jaw hanging!
Seven of the most expensive children's toys ever made
5 millionaires turned murderers
The youngest billionaires in the world and how they made it

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

How do you see your boss? He/sheis:

Previous results · Suggest a vote

Loading...