Energy analyst Chris Yelland has warned that electricity price hikes will stimulate theft of electricity and increase the levels of non-payments from consumers.
NERSA approved an 18.65% electricity tariff hike for Eskom.
Yelland says the latest hikes will have a huge impact on industries, the economy and the disposable income of consumers.
He further added that the high prices are diminishing returns for Eskom because more and more people will not be able to pay.
He says the increases also makes the business case for alternative energy more compelling.
“There will be increasing levels of nonpayment, theft of electricity, which is already a problem and also municipal arrears debt because municipalities will not be able to collect money from their customers and therefore not be able to pay what they owe to Eskom. So, there are diminishing returns from price increases.”
Price of electricity will soar in April:
Energy crisis gripping SA
Earlier, President Cyril Ramaphosa said he deeply regrets the national energy crisis that has plunged the country into Stage 6 rolling blackouts.
Presidential Spokesperson Vincent Magwenya said Ramaphosa acknowledges the frustration of citizens and the adverse impact of load shedding on small businesses and the economy.
Magwenya said the President, while acknowledging some progress made in implementing aspects of the National Energy Plan by government, is demanding greater energy and speed in implementation.
“The Presidency has been briefed regularly on the situation at Eskom. He has had several engagements with Minister Pravin Gordhan there will be meetings later on today, NATJOINTS meetings and over the next day. So there may well be meetings of the National Energy Crisis Committee as I indicated to look at urgent matters that can be taken and to give more direction to the implementation of the national energy plan.”
Reasons behind Nersa granting Eskom an 18.65% tariff increase : Energy Expert
