Don’t load shed the new tariff vision
The new tariff vision has some positive news for the long-suffering honest households who have been paying their dues.
South African electricity pricing has skyrocketed by nearly 900% over the last two decades, an unprecedented rate among countries not embroiled in conflict or suffering from hyperinflation. This exorbitant escalation, which has more than tripled the 150% increase in ordinary costs during the same period, is primarily attributed to the National Energy Regulator of South Africa's unfiltered price approvals, widespread corruption, mounting debt, and the costs associated with unfinished megaprojects like Medupi and Kusile power stations.
Minister Kgosientsho Ramokgopa of the Electricity and Energy Ministry, however, seems to dismiss his own role in this crisis. Despite the fact that power prices have skyrocketed to around R3.70/kWh from roughly 19 cents/kWh in 2007, Ramokgopa views this as merely another "challenge" thrown at the government. Nevertheless, the new tariff policy, set to be reviewed by the public, aims to address this mammoth issue.
It also addresses the issue of municipalities gouging affluent areas to subsidise poorer suburbs, as well as curbing Eskom's double-scamming of consumers by adding a debt recovery percentage to tariffs.
The new tariff vision promises some positive news for honest households, who have been largely paying their dues. Municipalities will no longer be able to loot the pockets of those living in affluent areas, while Eskom's tariffs will no longer be inflated by including a debt recovery percentage. The new policy also aims to alleviate the heavy burden of debt on both municipal and Eskom levels, thereby potentially stimulating economic growth and job creation. The hope is that this much-needed light at the end of the tunnel won't be snuffed out.
Written by urgent.news from The Citizen's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
