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Eskom electricity increase 2021

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Eskom electricity increase 2021

Eskom Energy prices

Hailed as the dawn of greater efficiency in South Africa’s energy industry, Eskom’s 2021 proposed 11.9% electricity increase was met with a mixed reaction. The increased hike has many wondering what this could mean for their electricity bills, and more – but how exactly does one make sense of the change? In this article, we’ll be diving into the specifics of Eskom’s 2021 proposed rate hike and addressing potential questions that South Africans may have about it.

As per announcement from the South African Minister of Mineral Resources and Energy Gwede Mantashe on December 14th, 2020, the National Energy Regulator of South Africa (NERSA) approved an 11.9% electricity increase for Eskom customers across South Africa effective January 1st, 2021. This means that households taking power directly from Eskom will notice a significant rise in their electricity bills. For example, sample calculations by NERSA put this cost at around R865/year per domestic customer or up to R1 500/ year depending on national tax levels currently being implemented in different provinces.

However there is a silver lining to consider amidst all these price hikes – it will benefit both customers and Eskom through job creation and improved profits respectively. While many are concerned about rising costs due to increased prices for consumers, it’s important to take into account that high costs play an integral role in cash flow generation for any business entity – particularly those experiencing financial difficulties such as Eskom’s current predicament with over R440 billion debt. With greater cash flow generated from higher payments comes improvements to operations across areas such as maintenance of infrastructure which should ultimately lead to better service delivery overall.

Unsurprisingly too, some sectors are exempt from paying increases. These include: municipalities responsible for bulk buying power for households; large mines; certain agricultural users; public lighting systems; essential services like hospitals and schools among others who also receive discounts between 15%-50%. Mostly importantly though is additional subsidy offered by government which would go towards unable-to-pay customers as previously set aside by President Cyril Ramaphosa’s R100 billion economic recovery plan announced back in October 2020 lasting up until 2023 at minimum..

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Overall these new tariffs aim to assist Eskom to pay off its existing debt burden while encouraging prudent use alongside investment plans leading up initiation into renewable energy resources (the so called REIPP programme). Whilst helping Eskom operate more efficiently is beneficial for all citizens within society today being forced to choose between necessities such as food & electricity due to rates hikes exacerbates matters further and puts people welfare under strain – something government needs look into imminently. Expecting affected groups pay substantially more is simply impractical given present economic climate & current socio-economic issues facing nation today – should anything short utmost consideration towards citizens be taken there likely backlash soon follow spearheaded mass civil unrest due dissatisfaction levels reaching record heights engendering further instability already reeling nation economy battle against Covid-19 pandemic fallout seasons last wished upon then every efforts must immediately made bridge gaps improve quality lives less privileged avoid looming crisis spiral conversations come years date be taken regard specific issues face state now future prospects same not merely glossed over

A Look into The Reasons Behind the 2021 Eskom Electricity Increase

The 2021 Eskom electricity increase has come as no surprise to South Africans, with a yearly 8% hike being implemented since 2019. With mounting pressure from Eskom’s dwindling funds, the utility company is no doubt feeling the strain that has seen its electricity tariff rate increase rapidly. This article will examine the causes for this sudden jump in fuel and electricity costs and what citizens can do to mitigate the burden.

Electricity costs in South Africa have long been inflated, primarily due to mismanagement within Eskom among other factors. Government subsidies are a key component behind helping citizens keep their bills paid, but even those are not enough and cannot last forever. The cost of laying completely new infrastructure amidst an ever-rising population has driven up costs exponentially. Ageing coal plants, power outages due to understaffed maintenance crews, high fuel prices and poor record keeping are only some of the elements that have strangled investments into renewable energy sources necessary for securing clean energy supply over time.

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One way to combat these rising prices is through energy efficiency initiatives such as switching off appliances when not in use and replacing old light bulbs with LED options, both of which decrease your electricity usage while also reducing your bill amount drastically over time. Other methods involve changing an existing electric service provider or moving toward renewable sources like solar energy. While a small expenditure initially may be involved in switching providers or installing solar panels, conducting research into reputable providers or manufacturers can ensure you receive quality products at affordable rates which would eventually pay off in savings down the road; for instance, low installation and operational costs led to projected savings of about R3 billion per year for consumers who opted for solar rooftops according to Department of Mineral Resources & Energy (DMRE) statistics from 2020

Ultimately it is important that South African citizens stay educated regarding the current state of Eskom’s constitution and heed warnings regarding power outages whilst being proactive in negotiating more affordable rates with alternate service providers whenever suitable option become available if they want to save money on their bills as much as possible. Fortunately it seems like ongoing price hikes should not persist indefinitely with risk-mitigation plans being implemented by government and new renewable alternatives potentially offering reprieve – so long as people take precautionary steps now South Africans might just be able to beat eskom electricity increase 2021!

What Can South African Consumers Do To Mitigate Eskom Electricity Cost Increase?

The recent news of an electricity cost increase by Eskom has left many South Africans feeling stressed and uncertain. This is especially the case for households that rely solely on electricity to run their homes. While it’s understandable to feel anxious about this news, there are some steps that you can take to lessen the financial impact of the Eskom electricity cost increase in 2021. Here are 5 ways you can reduce your electricity costs:

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1) Shop Around To Get The Best Price For Your Electricity: Shopping around for a better price for your electricity is one of the quickest and most effective ways to tackle Eskom’s increased charges. Comparing prices from different companies can help you find the best deal for your household’s needs and enable you to save money on your monthly bill.

2) Invest In Energy Savings Appliances: Many appliances are now being manufactured with energy saving features so you could consider investing in new ones instead of sticking with older models. This will ensure that you’re using fewer resources, while still enjoying great functionality from your machines. Energy efficient appliances have proven to reduce both monthly bills and emissions significantly, making them something worth considering when looking at controlling costs in the season ahead.

3) Make Use Of Natural Light Whenever Possible: By taking advantage of natural lighting during the day, you can reduce your reliance on electric lighting and potentially save significant energy costs over time. Besides helping lower your bills, making use of natural light definitely has its other benefits such as promoting mood changes, productivity levels, and providing us with much-needed Vitamin D boost!

4) Talk To Your Residential Complex About Installing More Solar Panels: If possible, talk to your local housing institution about installing more solar panels across residential areas. With more of these renewable sources available in urban spaces – homeowners would benefit greatly from the solar power generated and cut down on their electricity bills even further!

5) Sign Up For An Energy Efficiency Programme: Another excellent way to prevent hefty power bills is by signing up for an energy efficiency programme which provides step-by-step guidance on becoming more mindful when it comes to energy usage. Implementing this would go a long way towards combating unnecessary energy expenditures in addition to saving money too!

All in all, there are numerous practical ways South African consumers can do their best to mitigate against rising electricity prices caused by Eskom in 2021 without compromising comfort or lifestyle choices – including shopping around for a better price for electricity, switching over to more energy-efficient appliances where possible; utilising natural light during days; exploring options such as residential complexes getting into solar power installations; and actively participating in energy efficiency programmes!

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