Eskom still wants to charge you after you switch to solar power
Eskom says customers who generate or buy their own electricity may still contribute through network and fixed charges as falling sales volumes reshape its tariff strategy
South Africans who have invested in solar power to avoid increasing Eskom bills may soon be compelled to pay the utility regardless. Eskom recently reported a profit of R30 billion, nearly double the previous year's income, but also expressed worries over declining power sales due to the increasing use of alternative energy sources and customers generating their own electricity.
The utility's sales volumes have dropped by approximately 2% each year over the past ten years, primarily due to economic struggles, self-generation, energy efficiency improvements, reduced energy consumption, and lower demand from energy-intensive industries.
Eskom is now exploring ways to maintain its revenue streams beyond solely selling more kilowatt-hours. Its Distribution division has devised a strategy to retain customers and stimulate new demand, which includes negotiated pricing for smelters, targeting data centers, electric vehicle charging, optimizing wheeling, renewable power purchase agreements, and managing flexible electricity demand.
However, the utility has made it clear that customers who generate their own electricity or purchase power elsewhere may not be able to avoid Eskom charges entirely.
Even for customers who generate or buy electricity elsewhere, Eskom will still collect revenue through network charges, customer wheeling, and revised tariff structures that separate energy costs from the recovery of fixed costs. This means that residents utilizing solar power to decrease their reliance on Eskom will still contribute to the cost of maintaining the electricity network, even when they consume less electricity from the utility.
This approach has already caused concerns among consumer groups, especially as more households turn to solar to reduce their dependence on Eskom.
The Organisation Undoing Tax Abuse (OUTA) has previously challenged Eskom and several municipalities over demanding homeowners to register small-scale embedded generation (SSEG) systems, including solar installations. OUTA argues that residential customers should not rush to register their systems due to unclear requirements and shifting deadlines.
OUTA CEO Wayne Duvenage emphasized that the rights of citizens who have invested their personal funds to protect against years of rising electricity prices and an unreliable power supply are at stake.
Written by urgent.news from IOL's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
