A Closer Look At Eskom Electricity Price Increase 2021
The year 2021 has brought yet another electricity price increase for South African consumers courtesy of Eskom. South Africans were bracing themselves for a potential 15% hike when the National Energy Regulator of South Africa (NERSA) announced early this year that Eskom would be granted permission to increase electricity prices by 9.4%. This means that the amount people pay for a kilowatt hour (kWh) is set to rise from the current 91 cents per kWh to 99.44 cents per kWh starting July 1.
This latest electricity price increase has put Electricite de France SA, which supplies approximately 20% of national grid power, in the difficult spot of having to raise their tariffs because prices paid by Eskom are tied to operational costs at Koeberg nuclear plant located in Cape Town, which is partially owned by them. This could lead to households and businesses having to find other non-conventional sources of energy such as solar or hydroelectricity.
The looming electricity price hike couldn’t come at an even tougher time with South Africa still grappling with the peak winter months and facing a one trillion rand budget deficit due to Covid-19 lockdowns which have crippled the economy.
Adding salt to already burning economic wound caused by rising inflation, reduced consumer spending and higher unemployment numbers is natural gas supply disruptions due to ongoing strike action at petrochemical firm Sasol’s Oribi operations in Mpumalanga province which supplies domestically generated natural gas required for thermal energy production across key industrial sectors like iron and steel making, glass manufacturing, brass smelting and ceramics processing as well as household cooking purposes.
With no viable short term solution in sight for increasing revenue collection for state coffers apart from deep cuts into social welfare spendings aimed at spurting economic growth prospects, understanding and tacking all socio-economic factors affecting affordability remains critical than ever before. Smart use of technology coupled with proactive policy implementations need be considered immediately so that electricity prices do not turn into yet another onerous financial burden on households amid shrinking disposable incomes due to extended job losses amid pandemic epicenter’s unraveling nation wide.
Potential Impact Of Eskom’s Cost Hikes On Consumers
Eskom’s cost increases will have a direct and considerable effect on South African consumers. Electricity prices are set to increase by 5.2%, 11.58% and 13.88% during the next three years respectively, after the energy giant was granted permission by NERSA (National Energy Regulator of South Africa). This means that 2021 could see electricity costs being hiked up to 25%, resulting in possible financial hardship for households across the nation.
The immediate impact of these price hikes is no doubt going to be that a significant number of South Africans face rising electricity bills each month when they go to pay their accounts. As Eskom has been facing numerous issues with its coal delivery network, its ability to produce enough electricity capacity has been decreasing. This leads to strain on their generators which consequently decreases efficiency levels and raises overheads for the company, meaning more expense for consumers in the long run.
But it isn’t only the obvious financial burden which is concerning – this increase places further pressure on South Africa’s already-distance economy which relies heavy on power usage inputs from both businesses and residential consumers alike. It also serves as one more excuse for businesses to consider relocating their operations outside of South Africa, thus taking what income is still generated here elsewhere as well as jobs away from citizens who depend upon them to get by economically.
Additionally, unemployment figures may rise in response due to businesses having less money available to spend on staff wages – this can cause serious financial hardship for many families who rely on the wages earned by just one family member and no access whatsoever would be devastating beyond measure. Finally, poverty levels may take an increased strain should these price hikes take into full effect nationwide, leaving millions with no choice but an uncertain future where economic hardships are yet another battle they must fight each day simply in order to survive against a seemingly unstoppable enemy – rising costs of living coupled with ever increasing inflationaryity of goods throughout all possible markets in which goods can be bought or sold from..
How To Mitigate Effects of Eskom’s 2021 Cost Increases
Consumers in South Africa are facing a bitter reality as Eskom, the national electricity supplier, is set to increase electricity prices by 9.41% in 2021. This will have both direct and indirect impacts on households, affecting everything from their pocketbooks to their ability to keep up with payments or other bills they are already facing. Understanding these implications and how to minimize them can be helpful for customers as they plan ahead for the rest of 2021.
There are several strategies and tactics that consumers can employ in order to combat the effect of this price hike. The most effective way is to limit energy usage and be more mindful of what appliances or electronics you switch on throughout the day. Implementing a regular audit on household equipment can help identify any unnecessary electrical items that could be switched off or unplugged completely when not needed, such as lights and small appliances left on standby mode. You might also want to consider replacing old inefficient appliances with newer energy-saving models, since these not only cut down on your bills but also perform more efficiently too!
Considering renewable energy sources is another good way of reducing energy costs during this period of uncertainty. Investing in solar panels could provide a much-needed source of reliable power for households and act as an alternative to Eskom’s electricity supplies. Solar panel installations offer various benefits including lower utility bills, less reliance on grid power, fewer outages during load sheds, insurance benefits and more efficient ways of managing energy consumption – all these lead to cost savings that drastically reduce the impacts from Eskom’s proposed pricing hikes.
Another boon that has been made available due to the pandemic is virtual lifestyle solutions like Zoom or Skype sessions which enable people to work or socialize remotely without having rely on electricity supplies coming through traditional outlets like Eskom’sgrid power infrastructure which often suffers frequent outages and slowdowns due works being undertaken at power substations across South Africa. Not only do virtual sessions lead you away from hefty electricity bills while helping you maintain relationships easily but they offer cost-effective ways of staying connected too!
Overall, understanding the implications of an expected price hike this year has never been more important than now – start developing smart habits today so you can protect yourself against further disruptions in 2021. Taking into consideration your own personal needs and preferences along with switching off unnecessary appliances, investing in renewable energy solutions such as solar panelsand utilizing virtual solutions could all help mitigate some of the effects from this drastic cost increases set by Eskom come April 2021 onwards