South African residents have imposed the new proposed power tariff by their country’s power supplier (Eskom). The residents are to pay for the service they no longer use. The National Energy Regulator of SA (NERSA) has been directed by the Pretoria High Court in South Africa to disclose the Eskom price request for a 32.66 % hike for 2023–2024. Those who had previously paid R218 to stay connected to Eskom but had not used any energy will now have to spend R938. Citizens claim that Eskom has performed poorly in providing electrical service. It would charge the people for using the sun as a replacement source of light.
South Africa’s controversy regarding power supply
Ten years have passed since South Africa began to implement blackouts, and this year it has reached stage 6. Since some individuals might go up to six hours without electricity, solar panels are quite popular in both residential and commercial settings.
The motive behind the stiff tariff proposed by Eskom
- Avoid unjustified over/under-recovery of costs from customers that create unintended subsidies.
- Ensure fairness, equity, and transparency of subsidies existing in the system.
- Include use of systems costs for generators.
- Prepare for Eskom unbundling by ensuring divisional costs reflect accurately to avoid significant tariff impacts after legal separation.
- Provide the correct pricing signals for capacity and usage.
The impact of the new tariff structure on South African citizens
Eskom has emphasized that the goal is to ensure that off-grid customers pay a “fair” contribution to Eskom, even if they deny that doing so will disincentivize homes and businesses from deciding to switch to solar panels. According to some solar installation companies, installing a complete off-grid solar system will cost between R150 000 and R250 000, but PV grid installation costs R50.000/ R100.000. In 2020–2022, the number of companies and families switching to solar power increased by 36% in South Africa. The wealthy people who can afford it make up this percentage.
Finally, the new pricing structure will deter people from preparing to switch to solar energy. Residents already struggle with exorbitant food, fuel, and energy expenses. The planned pricing structure will exacerbate the wound’s already present hemorrhaging.
