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Electricity Minister Dr Kgosientsho Ramokgopa has admitted that South Africa’s electricity prices are unsustainable and warned the country is approaching “energy poverty”, where many households can no longer afford basic power. He has ordered a review of tariffs, promising big price changes in the coming months. Protests in Tembisa and other areas have highlighted the crisis, with poor households choosing between food and electricity. Experts say electricity costs have surged over 600% in recent years, far outpacing incomes, and are calling for urgent reforms, including a shift to renewable energy to reduce long-term costs.
In response, City Power has expanded its Free Basic Electricity (FBE) programme, already registering 10,000 qualifying customers and extending sign-ups until 31 December 2025. The initiative now includes informal settlements and Eskom-supplied areas, offering 50kWh of free electricity monthly and exempting beneficiaries from a R200 fixed monthly charge. This follows public backlash in Ekurhuleni over high surcharges. Officials say the goal is to reach 130,000 vulnerable households, helping shield the poorest residents from rising energy costs.
Read full article by IOL here
South Ocean Electric Wire (SOEW) has warned that cheap, non-compliant imported power cables are endangering South Africa’s mining, construction, solar, and manufacturing sectors. These substandard imports often fail local SANS standards, degrade quickly in harsh conditions, and pose safety risks such as overheating, arcing, and fires. SOEW is calling on government agencies to investigate possible product dumping and enforce compliance to protect jobs, safety, and the competitiveness of the local cable manufacturing industry. They argue that local production, which uses high-quality materials and meets strict standards, is vital for industrial stability and economic growth.
The issue extends beyond cables to other non-compliant electronics like Wi-Fi and Bluetooth devices being sold online without required ICASA or NRCS approval. These illegal imports bypass safety checks, giving sellers an unfair advantage over compliant businesses. Industry experts warn that without stronger enforcement from customs and regulators, unsafe products will continue to enter the market, threatening both consumers and legitimate local industries.
Read full article by My Broadband here
Business Leadership South Africa (BLSA) and Business Unity South Africa (BUSA) have called on the government to stop Eskom from using legal action to block electricity trading licences issued by Nersa. The groups argue Eskom’s court challenges — aimed at protecting its monopoly and preventing competition — are undermining national energy reform, delaying critical projects, and deterring investment. They say this behaviour directly contradicts the government’s plan to unbundle Eskom, encourage private sector generation, and create a competitive energy market to tackle the power crisis.
The business lobbies are urging the Minister of Electricity and Energy to force Eskom to drop its lawsuits, commit to collaboration with stakeholders, and support the integration of new generation capacity. BLSA CEO Busi Mavuso said Eskom’s actions are “illogical and untenable” given South Africa’s urgent need for more power on the grid to end load shedding and revive the economy. Experts warn that without new capacity and competition, the grid will remain under strain, threatening the country’s growth and stability.
South African property owners are being warned to avoid fly-by-night solar installers who cut corners on safety and compliance to offer cheaper prices. According to One Energy, many rogue operators are using low-quality cables, inadequate grounding, and unapproved inverters, which can lead to fires, electrocution risks, insurance claim rejections, and legal troubles. These shortcuts also jeopardise compliance with municipal and Eskom small-scale embedded generation (SSEG) regulations, potentially leading to costly redesigns and re-installations.
One Energy advises customers to choose qualified installers who meet SANS safety standards, use NRCS-approved inverters, and follow proper installation procedures. Warning signs of unqualified providers include significantly low quotes, vague warranties, lack of certifications, high-pressure sales tactics, and no fixed business address. The company stressed that while discount installations may seem attractive, the long-term risks and expenses far outweigh the savings.
July 2025
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Eskom reports average breakdowns of 13,628MW, marking the ninth consecutive week above its 13,000MW “safe” threshold. Despite this, the grid remains stable due to increased diesel generator use and reduced planned maintenance. The Energy Availability Factor (EAF) dipped to 62.07%, while diesel usage surged, with R5.26 billion spent so far this year. Eskom says 3,470MW of capacity is expected back online soon, but the risk of Stage 2 load-shedding persists if breakdowns approach 15,000MW.
Read full article by My Broadband here
The City of Cape Town has committed R183 million to its solar feed-in programme as part of a broader R71.2 billion energy budget over the next three years. This includes upgrading streetlights, curbing electricity theft, and enhancing load-shedding resilience. With over 1,842 participants already earning more than R50 million through its Cash for Power initiative, the city is also advancing major projects like the Atlantis Solar Plant and expanding the Steenbras Hydro Storage Scheme. A 5MW battery storage facility is also in development to support grid stability.
Read full article by My Broadband here
From 1 July 2025, South African households face monthly electricity bill increases of between R245 and R334, depending on their municipality. While Eskom’s average hike for direct customers was 12.74%, many municipalities have approved even higher increases, citing their own cost-of-supply studies. Cape Town, Johannesburg, and Ekurhuleni are among the metros with the biggest monthly hikes. Read the full breakdown of how each city is affected here
June 2025
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South Africa’s electricity system is facing a critical financial threat as municipalities continue to rack up unpaid debts to Eskom, now totaling over R109 billion. Electricity and Energy Minister Kgosientsho Ramokgopa warned that this growing debt poses an “existential problem” that could collapse the country’s power infrastructure. He explained that Eskom, unable to recover revenue from bulk municipal users, is being forced to operate unsustainably, which prevents it from reinvesting in essential infrastructure. A 2023 debt relief programme aimed at easing the crisis has shown limited success, with many municipalities failing to meet conditions such as paying current bills, implementing smart meters, and removing illegal connections.
Meanwhile, the National Energy Regulator of South Africa (Nersa) has stepped in to protect paying consumers, rejecting Eskom’s attempt to recover R29.6 billion in municipal arrears over three financial years through higher tariffs. Nersa found that allowing Eskom to recoup this debt through price hikes would unfairly penalize law-abiding customers and further strain the economy. The regulator emphasized that Eskom must instead work with municipalities and government to recover the funds, while ensuring that future debts aren’t added to the burden of compliant citizens. This decision reflects a critical balancing act between Eskom’s financial survival and public affordability as the power utility navigates a challenging winter and a fragile energy transition.
Read full article by My Broadband here
A fierce debate is intensifying over Eskom’s Negotiated Pricing Agreements (NPAs) with major industrial users like South32’s Hillside aluminium smelter and ferrochrome producers. While the government insists these discounted electricity deals are necessary to protect jobs and maintain exports, critics argue they lack transparency, distort the electricity market, and shift the financial burden to ordinary consumers. Hillside receives electricity at roughly half the standard industrial rate under a NERSA-approved 10-year NPA, costing Eskom around R10 billion less annually than it would under regular tariffs. Although Eskom defends the discount as compensation for Hillside’s grid flexibility, analysts like Meridian Economics argue that similar grid support could be delivered more affordably via battery storage systems, raising concerns about the deal’s true value.
Critics also highlight the lack of rigorous economic modelling in NERSA’s approval process and question whether Hillside’s electricity use delivers better value than if the same power were allocated to small businesses or other sectors. Meanwhile, the South African Cabinet has greenlit an expansion of the NPA framework to include ferrochrome and alloys smelters, further fueling concerns of a poorly regulated subsidy system benefitting a privileged few. As Eskom faces financial distress and ordinary users struggle with soaring electricity prices, experts call for a transparent, evidence-based review of all NPAs, with clear public metrics and hearings to ensure fair and accountable energy policy.
Read full article by My Broadband here
Eskom has confirmed it is using satellite imagery to identify unregistered rooftop solar systems in South Africa, intensifying efforts to enforce compliance with its small-scale embedded generation (SSEG) registration requirements. While solar panels are easily detectable from the sky due to their visibility and contrast with rooftops, this move has sparked concerns among privacy advocates. However, experts note that these images are already publicly accessible through platforms like Google Maps and Earth. Eskom’s use of satellite data follows a growing push to register systems amid claims that more than half of solar PV installations across the country remain unregistered.
Critics argue that high costs, administrative inefficiencies, and unclear regulations have discouraged compliance, especially for Eskom Direct customers. One of the most contentious requirements is that installations must be signed off by a professional electrical engineer registered with the Engineering Council of South Africa (ECSA) — a process that can cost tens of thousands of rand. Energy expert Chris Yelland and the Electrical Contractors Association of South Africa question the legality and necessity of this requirement, citing existing legislation that only requires a certificate of compliance from a qualified electrician. Meanwhile, advanced AI tools like those developed by Esri are helping utilities automate solar panel detection, making enforcement easier — and putting pressure on non-compliant households.
South Africa’s renewable energy sector is facing backlash over proposed import tariff hikes of up to 30% on key components used in solar and wind power systems. The Association for Renewable Energy Practitioners (Arep) and other industry bodies have criticised the International Trade Administration Commission’s (Itac) review, warning that such increases will drive up system costs, making solar energy less accessible to lower- and middle-income households. Arep says the move contradicts South Africa’s energy access and affordability goals, and it highlights risks of outdated tariff classifications causing customs delays and financial losses for legitimate importers.
Other organisations, including the South African Photovoltaic Industry Association (Sapvia) and South African Wind Energy Association (Sawea), echoed Arep’s concerns. They argue that the proposed changes undermine existing job creation efforts, particularly in the deployment and installation phases of renewable projects, where most employment is generated. Sapvia and Sawea have called for a more strategic and inclusive approach to tariff reforms, aligning with the Renewable Energy Masterplan. Critics say the current proposal could hurt local growth and discourage smaller energy adopters, while failing to significantly boost local manufacturing in the short term.
South Africa’s solar power system prices, after years of dramatic drops, appear to be stabilising, with experts warning that the era of steep discounts may be over. Prices plunged in 2023 and 2024 due to overproduction in China and local oversupply, driven by the urgent demand during severe load-shedding. However, Eskom’s improved performance and nearly a year of load-shedding relief have drastically reduced demand, leaving suppliers with excess stock and prompting aggressive price cuts to clear inventory.
By mid-2025, solar component prices have plateaued, with no reductions since November 2024. Industry leaders from Rubicon and AWPower confirm the market is in a “reset” phase and expect price increases or stabilisation in the second half of the year. Globally, rising polysilicon costs and consolidation among manufacturers suggest upward price pressure, while battery prices are nearing their floor, according to BloombergNEF. This period represents a prime window for investment in solar systems, with costs likely to rise due to global and local supply dynamics.
Read full article by My Broadband here
Many Eskom customers are reporting that their electricity bills have increased far beyond the widely publicized 12.74% average tariff hike implemented on 1 April 2025. This discrepancy stems largely from Eskom’s new Retail Tariff Plan (RTP), which shifts cost recovery away from energy use toward higher fixed monthly charges. One customer’s bill rose by 40% despite consistent electricity usage, mainly due to a jump in fixed costs like service and generation capacity charges, as well as new variable fees such as ancillary service and network demand charges.
The Electricity Resellers Association of South Africa (Erasa) also confirmed that multi-dwelling units are seeing similar impacts, with average bill increases of around 30% for users consuming about 400kWh per month. Eskom’s stated 12.74% hike is an average across all tariff categories and doesn’t reflect the component-specific increases in the new billing structure. Smaller households and low-usage customers are most affected, while higher-usage consumers may see smaller relative increases. As a result, customer frustration is mounting, with many demanding clearer communication and fairer pricing.
Read full article by My Broadband here
The OECD report emphasized that the distribution network’s dysfunction is a structural issue, not merely a financial one, and suggested redefining the roles of municipalities and Eskom. It urged reforms such as earmarking electricity revenue for grid upgrades and introducing private sector distribution concessions. Energy analyst Chris Yelland echoed this view, labeling the municipal distribution segment as “completely dysfunctional” and warning that continued neglect could spark a national crisis. With South Africa’s GDP growth lagging behind other emerging markets and the power crisis shaving off 1.5% of economic output, the stakes for reform are higher than ever.
South Africa is heading into a high-risk winter period for electricity supply, with Eskom’s latest 52-week outlook showing likely capacity shortfalls exceeding 2,000MW from 16 June to 20 July 2025. This period, coded red in the utility’s report, suggests load-shedding of Stage 2 or higher is probable. Even under Eskom’s planned risk scenario, the system is expected to be marginally short, while the likely risk scenario paints a far more severe picture. The Winter Outlook confirmed that if unplanned outages remain below 13,000MW, load-shedding could be avoided — but recent figures show unplanned losses have exceeded 15,680MW, pushing Eskom into Stage 2 load-shedding in May.
Experts, including energy analyst Matthew Cruise, warn that if current trends continue, Stage 4 load-shedding is a real possibility as demand rises with colder temperatures. Eskom has already burned R2.85 billion in diesel for its backup Open-Cycle Gas Turbines this year — a figure set to rise dramatically under worse-case conditions. Cruise emphasized that Eskom is already beyond its worst-case scenario threshold of 15,000MW, making deeper load-shedding highly likely unless major generating units are brought back online swiftly.
May 2025
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The City of Cape Town (CoCT) has clarified that the National Energy Regulator of South Africa’s (Nersa’s) newly published net-billing rules do not apply to its popular Cash for Power feed-in programme. Cape Town is a leader in small-scale embedded generation (SSEG) policy and infrastructure, offering an online registration platform, an affordable bidirectional meter, and cash payouts to residents and businesses whose solar contributions exceed their total municipal bills. This contrasts with Nersa’s framework, which prohibits cash compensation, limits credit to variable energy charges, and mandates time-of-use tariffs.
Cape Town argues that its programme operates under a different legal framework, specifically through formal procurement under the Municipal Finance Management Act and with National Treasury approval. As such, its practices are not subject to Nersa’s net-billing stipulations. With over 1,800 participants earning more than R50 million in credits and cash, the city’s model not only incentivises solar adoption but also strategically reduces reliance on Eskom. CoCT continues to champion its feed-in initiative as part of broader efforts to enhance energy security and combat load-shedding.
New electricity net-billing rules approved by South Africa’s energy regulator, Nersa, could significantly reduce the appeal of investing in solar power for households and businesses. Released in February 2025, these regulations allow electricity distributors like Eskom and municipalities to set their own tariffs and technical standards for compensating small-scale embedded generators (SSEGs) feeding excess power into the grid. However, the rules limit how exported power is credited—only offsetting variable charges and excluding fixed fees. Additionally, prosumers cannot be paid in cash, and any unused credits must be cleared at the end of the financial year, effectively devaluing surplus energy.
Contrastingly, the City of Cape Town has adopted a more solar-friendly approach by offering cash payouts and allowing excess power to offset broader municipal charges. This strategy has already rewarded residents with over R55 million in earnings and reduced the city’s reliance on Eskom. Experts warn that if Nersa’s model becomes standard, it could slow solar adoption and push current solar users to disconnect from the grid entirely. This would eliminate a valuable, local energy source for municipalities and hinder progress toward a more distributed and sustainable energy system.
Read full article by My Broadband here
The implications of a cyberattack during load-shedding are severe, as real-time grid balancing during power cuts makes the system more fragile and prone to cascading failures. KnowBe4 warns that coordinated attacks on smart meters or backend systems could trigger grid instability with relatively little effort. To mitigate these risks, it calls for urgent practical action: formal designation of critical sites, end-to-end encryption for smart meters, segmented networks, real-time monitoring, and continuous cybersecurity training. For South Africa, where the power supply is already under strain, failing to address these vulnerabilities could result in devastating disruptions.
Eskom’s latest operational data confirms that the utility is burning more diesel than ever to sustain electricity supply, reflecting the ongoing failure to meet its generation recovery goals. From 1 April to 15 May 2025, average unplanned outages hit 13,456 MW, well above the 13,000 MW threshold that Eskom set as the limit to avoid load-shedding. These breakdowns, along with delayed maintenance (outage slips), caused the year-to-date energy availability factor (EAF) to drop to 56.97%, far below the 70% target Eskom had promised to achieve by March 2025. This performance shortfall has forced the utility to rely heavily on open-cycle gas turbines (OCGTs), with diesel use surging by 171% year-on-year.
Eskom has already spent R2.85 billion on diesel for OCGTs this financial year, generating 478.63GWh — the highest usage ever recorded for this period. This contradicts assurances from Eskom’s leadership that performance improvements would reduce diesel dependency. Former CEO André de Ruyter previously warned that the perception of improved stability was misleading and largely driven by excessive diesel spending, not genuine performance gains. Despite official optimism, the data underscores that load-shedding remains a persistent threat and that South Africa’s energy recovery is far from complete.
Alumo Energy CEO Rein Snoeck Henkemans has raised alarms over significant delays and inefficiencies in South Africa’s small-scale embedded generation (SSEG) registration process, warning that these bureaucratic hurdles could stifle solar adoption. He highlighted inconsistencies in Eskom’s responsiveness across regions and blamed municipalities—particularly Tshwane—for long processing backlogs. While some cities like Cape Town offer digital registration systems, many others still rely on outdated manual processes, causing confusion and frustration for homeowners and solar installers. Henkemans urged Eskom and municipalities to implement streamlined, digital platforms and even offered to help develop these systems at no cost.
A major point of contention is Eskom’s requirement that professional electrical engineers sign off on residential solar installations, a policy Henkemans and other industry experts argue is excessive and impractical. He contends that certified electricians should be allowed to approve installations, as they already issue Certificates of Compliance for home wiring. The high cost and scarcity of engineers are creating unnecessary financial and logistical barriers to solar adoption. While Eskom’s waiver of SSEG registration fees until March 2026 is welcomed, Henkemans believes it won’t make a meaningful impact unless other costly and cumbersome requirements are also reconsidered.
Read full article by My Broadband here
Energy expert Matthew Cruise has raised concerns about Eskom’s capacity to handle winter demand after the power utility implemented stage 2 load-shedding due to unplanned outages reaching 15,868MW. This level of capacity loss exceeds the 15,000MW threshold Eskom had set in its Winter Outlook 2025, which predicted up to 21 days of stage 2 load-shedding under such conditions. Cruise warned that South Africans should prepare for load-shedding potentially reaching stage 4, especially since winter demand is just beginning to rise. He criticized the lack of transparency from Eskom regarding specific issues at individual power stations contributing to these losses.
Despite this, Energy Minister Kgosientsho Ramokgopa insisted that the 2025 Winter Outlook remains valid and that Eskom is entering the season with 2,500MW more capacity than the same time in 2024. He acknowledged the breach of the 13,000MW unplanned capacity loss threshold, citing contractor failures and poor oversight of original equipment manufacturers as key reasons for delayed returns from maintenance. Ramokgopa maintained that, barring further setbacks, the worst-case scenario remains stage 2 load-shedding. However, the current data suggests the outlook may already be too optimistic.
Read full article by My Broadband here
Private solar power is playing a major role in reducing load-shedding in South Africa, according to the National Transmission Company of South Africa (NTCSA). The NTCSA, spun off from Eskom, estimates that around 6,178MW of behind-the-meter rooftop solar is now installed nationwide, enough to offset up to six stages of load-shedding when running at full capacity. These systems help lighten Eskom’s daytime load, saving diesel and water reserves for emergencies. However, recent overcast weather across central and northern regions, including Gauteng, has reduced solar output, pushing users back onto the grid and triggering weekend load-shedding to preserve backup reserves.
Despite its clear benefits, Eskom has often cast private solar in a negative light, arguing that consumers using the grid primarily as backup justify higher fixed tariffs. Energy Minister Kgosientsho Ramokgopa has downplayed claims that private solar eases Eskom’s burden, instead attributing improvements to the government’s Energy Action Plan. While deregulation and tax incentives under President Cyril Ramaphosa did boost solar uptake, critics note that many installed systems well before such measures due to chronic power shortages. The government’s slow response to expert warnings has been blamed for the crisis, and private investment has filled the void created by years of inadequate energy planning.
South African households and businesses are increasingly turning to alternative energy solutions, moving away from Eskom’s grid due to high tariffs and supply instability. In 2024, Nersa registered a record 469 private-sector power projects with a total capacity of over 4,000 MW, pushing cumulative private capacity beyond 11,000 MW—outpacing even the government’s REIPPPP. This surge demonstrates the powerful impact of deregulation, which has enabled the private sector to fill critical infrastructure gaps. Stanlib economist Kevin Lings emphasized that deregulating other sectors could similarly unlock growth and investment, highlighting that the private sector is both willing and financially equipped to invest in essential infrastructure if given the opportunity.
Despite a temporary improvement in Eskom’s performance and reduced load-shedding in 2024, interest in solar power surged again in response to rising electricity prices and tariff hikes. Rooftop solar installations spiked in 2023 and are regaining momentum, fueled by more affordable solar technology and financing options. Platforms like Standard Bank’s LookSee have seen significant increases in inquiries and financing applications for solar systems, particularly since mid-2024. With components becoming up to 30% cheaper and another 12.74% tariff hike implemented in April 2025, solar energy is becoming not only a reliable but also a cost-effective solution for South Africans looking to manage their energy expenses and reduce reliance on Eskom.
April 2025
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South Africa’s power system remains under severe pressure as winter approaches, with high electricity demand, frequent unplanned outages, and increased maintenance straining Eskom’s capacity. The Minerals Council’s March 2025 electricity update reported an Energy Availability Factor (EAF) of just 57.5%, nearly unchanged from February, and highlighted a narrow margin between supply and demand. With dispatchable generation barely covering average demand, 55 hours of load shedding were necessary, especially after major units like Koeberg Unit 2 and two Kusile units went offline. The use of Open-Cycle Gas Turbines (OCGTs) to meet demand reached levels last seen during 2023’s worst blackouts, signaling deep-rooted system fragility.
Eskom has acknowledged that the grid remains constrained, though currently stable, with the Unplanned Capacity Loss Factor (UCLF) at 28.67% year-to-date. The utility is continuing aggressive maintenance to prepare for peak winter loads, yet energy experts remain concerned. Chris Yelland warned that the heavy reliance on coal—accounting for 80% of the mix—poses a major economic risk, while Professor Hartmut Winkler predicted intermittent load shedding will persist for two to three more years. Eskom is set to release its winter outlook later in April to provide a clearer picture of the coming months.
Read full article by BusinessTech here
AfriForum has issued a formal legal challenge to Eskom, demanding clarity on its mandatory registration requirements for small-scale embedded generation (SSEG) systems. The civil rights group argues that current legislation only mandates registration for systems generating over 100kW, and unless Eskom can provide specific regulations justifying its demands on smaller residential systems, its enforcement may be unlawful. AfriForum previously requested clarity in early 2025 but received no response, raising suspicions of regulatory overreach.
The group is also questioning Eskom’s insistence that solar installations be signed off by qualified engineers—an expensive requirement that could cost homeowners tens of thousands of rands. AfriForum has given Eskom until 18 April to cite the exact regulations that support its registration and penalty demands, or face potential legal action.
Read full article by My Broadband here
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Environment Minister Dion George has called on Eskom to make its current waiver on solar registration fees and smart meter costs permanent for residential customers. While Eskom has committed to waiving these charges until 31 March 2026—saving households with typical 16 kVA systems up to R9,132—the minister argues that this temporary relief should become a long-term policy. He warned that reinstating these fees would create financial barriers that could discourage investment in solar and hinder South Africa’s efforts to meet its climate commitments.
George’s remarks come as Eskom enforces a 12.74% electricity tariff hike, further amplifying the need for affordable renewable options. Although Eskom claims solar customers will benefit from significant savings during the waiver period, controversy continues over its insistence on requiring electrical engineers to approve installations—a costly process strongly opposed by the Electrical Contractors Association. The association insists that qualified electricians and Master Installation Electricians are fully capable of handling such installations, potentially saving homeowners thousands of rands.
Read full article by My Broadband here
March 2025
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Eskom’s plan to charge solar-equipped households a hefty registration fee of R20,000 to R30,000 could drive more customers off the grid, hastening its financial crisis. This Homeflex Tariff plan increases network costs for solar users, justified by Eskom as a way to ensure all customers contribute to grid maintenance. However, this move risks pushing solar adopters toward full independence, as investing the R30,000 in additional solar panels or battery storage could eliminate their need for Eskom entirely.
This policy shift could also become a political flashpoint, with parties like the DA framing it as an unjust tax on solar users, while others, like the EFF, could spin it as a necessary wealth redistribution measure. Instead of alienating customers, Eskom should focus on making grid participation attractive and financially viable, ensuring long-term revenue and stability.
Read full article by Daily Maverick here
Additionally, South Africa’s VAT increase to 15.5% from 1 May 2025 will further raise electricity costs. While Nersa has limited Eskom to implementing 20% of the RTP’s proposed changes in 2025, with 30% in 2026 and 2027, analysts warn that the combined effect of rising tariffs and structural adjustments could lead to much higher electricity bills than expected. The full impact of these changes will depend on electricity consumption levels and the specific tariff packages consumers fall under.
Read full article by BusinessTech here
Researchers recommend closing coal plants and replacing them with renewables, raising public awareness of health risks, and improving government air quality management. South Africa is gradually transitioning away from coal-powered energy, but political debates and economic reliance on coal mining jobs in Mpumalanga slow the process. Eskom’s own research downplays the impact, estimating only 330 pollution-related deaths annually, but independent findings suggest the true toll is far greater.
Read full article by BusinessTech here
With winter approaching, demand is expected to rise while more units are taken offline for maintenance, raising the likelihood of renewed blackouts. Robert Futter and Professor Hartmut Winkler caution that Eskom’s ageing fleet is vulnerable to further breakdowns, and load shedding could persist for another two to three years. A stark reminder of this came on 2 March, when Koeberg Unit 2 unexpectedly tripped, reinforcing concerns that South Africa’s energy stability remains fragile.
Read full article by BusinessTech here
February 2025
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Cape Town’s Cash for Power programme has paid R55 million to businesses and households since 2022, encouraging solar energy adoption to reduce reliance on Eskom. With 1,842 small-scale power sellers—1,090 residential and 752 commercial—the city offers a feed-in tariff plus an additional 25c per kWh incentive. The initiative is part of a broader strategy to end load-shedding, and Cape Town plans to invest R4 billion in grid upgrades over the next three years to support renewable energy integration.
To further accelerate its energy transition, Cape Town secured a €150 million (R2.9 billion) loan from Germany’s KFW Development Bank to strengthen its power grid and enable more renewable energy projects. Potential plans include expanding the Steenbras hydropower plant and constructing a new solar facility. As Eskom struggles with rising electricity prices and supply instability, Cape Town continues to push for a more energy-secure and decentralized power system.
Read full article by BusinessTech here
Eskom has reintroduced Stage 6 load shedding due to multiple unit breakdowns, planned maintenance, and depleted emergency reserves. Electricity Minister Kgosientsho Ramokgopa explained that five units tripped at Majuba Power Station, followed by failures at Medupi and Camden, removing over 7,000MW from the grid. Eskom CEO Dan Marokane attributed the crisis mainly to a transformer overload at Majuba and valve failures at Camden. While six of the ten lost units have been restored, Eskom aims to bring all units back online by Tuesday, with full system recovery expected by the end of the week.
Despite this setback, Ramokgopa insists that aggressive maintenance must continue to ensure long-term grid stability, even though it carries short-term risks. Eskom’s CEO emphasized that no sabotage was detected and assured that Stage 6 would likely be reduced on Monday, 24 February. The crisis highlights Eskom’s ongoing struggles with ageing infrastructure, requiring urgent interventions to prevent further power disruptions in the future.
Read full article by BusinessTech here
Eskom’s reliance on load reduction instead of fixing overloaded substations and promoting alternative energy is prolonging South Africa’s power crisis, according to energy expert Mohamed Madhi. He argues that targeting specific areas for load reduction, instead of upgrading infrastructure, creates a cycle of illegal connections and worsening grid conditions. Eskom should instead prioritize grid upgrades in high-demand areas and offer incentives for solar power adoption rather than imposing fines on unregistered systems. While Eskom recently reintroduced load-shedding after 10 months, some believe load reduction is being used as a cover to avoid admitting continued supply issues.
Madhi warns that reducing solar tax incentives is a mistake, as solar power is now cheaper than Eskom electricity, which has risen 800% since 2007. Supporting behind-the-meter solar solutions would reduce costs for consumers while easing pressure on the grid. However, since Eskom relies on higher electricity sales to sustain its revenue, it has little incentive to support cheaper, decentralized power solutions. Without proactive investment in grid upgrades and alternative energy, South Africa risks prolonged power instability and rising electricity costs.
Read full article by My Broadband here
Lithium batteries used in solar systems in South Africa are generally safe, but proper installation and maintenance are crucial to minimize risks. While rare, incidents of thermal runaway—where a battery releases energy uncontrollably, potentially causing fires—have occurred. A recent case in Vanderbijlpark saw an unused lithium battery explode, injuring several people. Experts emphasize that most solar batteries in South Africa are lithium-iron phosphate (LiFePO4), known for their stability and low fire risk. The primary causes of battery failures include internal short circuits, overcharging, overheating, and age-related wear.
To reduce fire hazards, households should ensure installations are done by qualified technicians, adhere to safety regulations, and obtain a Certificate of Compliance (CoC). Regular inspections and maintenance are also recommended. Battery storage should be in a well-ventilated, fire-resistant area, ideally in garages, as advised by South African manufacturer Freedom Won. Despite concerns, lithium battery malfunctions are far less frequent than petrol or diesel vehicle fires, making them a safe and efficient energy solution when handled correctly.
Eskom’s generation division has been a financial burden, consistently posting losses while its transmission and distribution segments show improvement. In September 2024, Eskom’s generation arm reported a R4.3 billion loss, while transmission posted a R21.5 billion profit and distribution recorded an R857 million loss. Historically, generation losses increase significantly by the end of the financial year, with 2024 losses hitting R36 billion. The problem stems from Eskom’s ageing coal fleet, which is expensive to maintain, leading to high electricity tariffs. Despite a 12.7% tariff increase approved for 2025, Eskom’s requested 36.15% hike was rejected by Nersa.
Energy analysts warn that Eskom’s challenges may worsen due to difficulties maintaining coal plants, but the utility credits its generation recovery plan for reducing breakdowns from 18GW to 11GW. Eskom chair Mteto Nyathi expects the plan’s completion in March 2025 to mark the end of load-shedding, but concerns remain about long-term sustainability. Without further investment in renewable energy and grid modernization, Eskom’s financial strain and electricity price hikes could continue to impact South African households and businesses.
From April 2025, South Africans will pay 12.7% more for electricity, following Nersa’s approval of Eskom’s tariff increase. A household consuming 800kWh per month, which paid R1,055 in 2014, now pays R2,948, and this will rise to R3,324 in 2025—a 179% increase in a decade. By 2027, further hikes will push this even higher. These increases far exceed inflation, placing a heavy financial burden on consumers. Eskom argues these hikes are necessary for financial recovery, but critics blame poor management, inefficiencies, and rising municipal debt.
Opposition parties and business leaders oppose the hikes, calling for Eskom to cut wasteful spending, improve debt collection, and increase transparency. Many households are turning to solar power as Eskom’s prices become unaffordable. Eskom’s Financial Recovery Plan aims to stabilize its finances, but without major reforms, consumers will continue to bear the cost of Eskom’s failures.
Read full article by BusinessTech here
Energy expert Mohamed Madhi warns that load-shedding may return in 2025, even if Eskom maintains its improved performance. While Eskom’s energy availability factor (EAF) rose to 60% in 2024, up from 55% in 2023, the power utility still struggles to meet demand. Economic growth and increased electricity usage could put further strain on the grid. A key reason for 2024’s stable supply was reduced business activity and the widespread adoption of rooftop solar, which may not be enough to sustain supply if demand rebounds. Investec forecasts GDP growth of 1.9% in 2025, and Madhi suggests that growth between 2% and 3% could trigger load-shedding again.
Eskom’s long-term system outlook shows it could struggle to meet demand for most of 2025, though the situation is better than in 2023. The key to preventing blackouts lies in the commissioning of Kusile Unit 6 and Medupi Unit 4, expected to add 1,600MW of generation capacity by March 2025. However, Eskom’s ageing fleet remains unreliable, and its recent improvements may not be sustainable without continued maintenance and investment. If demand rises significantly, South Africa may face another year of electricity shortage.
Read full article by My Broadband here
Eskom faces severe financial instability, with R57 billion in operating losses and liabilities exceeding assets by R50 billion, according to the Auditor General (AG). The AG’s report to Parliament highlighted widespread corruption, lack of accountability, and repeated audit failures that have worsened Eskom’s decline. Despite efforts to stabilize power supply, the utility failed to meet key targets, including cost savings, environmental compliance, and improving energy availability. Municipal debt, illegal connections, and financial mismanagement continue to drain resources, making long-term sustainability uncertain.
The AG warned that Eskom’s future remains dependent on government bailouts and regulatory decisions, while ongoing inefficiencies and crime undermine recovery efforts. Recommended solutions include strengthening internal controls, enforcing accountability, and improving financial oversight. However, without real consequences for mismanagement and corruption, the report suggests Eskom’s targeted savings and turnaround plans may be ineffective in restoring financial stability.
Read full article by My Broadband here
January 2025
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Eskom has applied for a 36.15% electricity tariff increase for 2025/26, with further hikes of 11.81% in 2026/27 and 9.1% in 2027/28. If approved, this would result in a 66% total increase over three years, significantly impacting South Africans. Over the past decade, Eskom’s tariffs have risen by 237%, far exceeding inflation. Currently, customers using 600kWh per month pay R1,692, but this would increase to R2,808 in 2027 under the proposed hikes. A household using 1,500kWh monthly would see costs rise from R6,810 to R11,302.
Critics, including the Organisation Undoing Tax Abuse (Outa), have opposed these hikes, arguing they are unaffordable and driven by Eskom’s inefficiencies and cost mismanagement. Outa noted Eskom prioritizes revenue increases over cost reductions, further burdening South Africans already struggling with high living expenses. It recommended rejecting the proposed hikes, improving operational efficiency, and increasing transparency.
Energy and Electricity Minister Dr. Kgosientsho Ramokgopa has raised alarm over South Africa’s escalating municipal debt and unaffordable electricity prices, calling them a “ticking time bomb” that threatens national stability. Speaking at an Energy Action Plan briefing, he highlighted the progress in Eskom’s operations, including over 200 days without load-shedding and efforts to reach a 70% energy availability factor. However, the minister underscored that the R92 billion owed to Eskom by 75 municipalities—up R19 billion since March 2024—poses a critical challenge. He noted that steep electricity tariffs leave many South Africans, particularly pensioners and low-income households, unable to afford basic energy needs, exacerbating poverty and risking social unrest.
Read full article by BusinessTech here
December 2024
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President Cyril Ramaphosa has set 1 January 2025 as the official start date for the Electricity Regulation Amendment (ERA) Act, which aims to reform South Africa’s electricity market. The Act introduces a competitive energy market, breaking Eskom’s longstanding monopoly over electricity production, transmission, and distribution. A key feature is the establishment of an independent system and market operator (TSO) to oversee fair electricity wheeling between Eskom and private producers. While most provisions are proceeding, Ramaphosa has delayed the implementation of a contentious clause defining “reticulation,” which municipalities argue could undermine their constitutional authority to distribute electricity.
Municipalities, represented by Salga, fear the clause will threaten their revenue streams, as electricity sales fund essential services. They have expressed their intent to challenge the bill, citing potential financial instability for municipalities. Despite these concerns, energy experts and business leaders broadly support the bill, which is seen as vital for reducing Eskom’s dominance and enabling diverse energy production. Nersa’s expanded licensing role will allow more entities to enter the market, with producers competing on pricing, fostering investment and innovation in South Africa’s energy sector.
Read full article by My Broadband here
Eskom’s initial investigation into the explosion at Matla Power Station Unit 6 on 12 December 2024 points to a ruptured high-pressure steam steel pipe as the cause. The explosion led to a loud bang, power loss in the Unit 6 area, and a dust cloud that delayed assessment until the next morning. Nine employees suffered burn injuries, with one in critical condition and two semi-critical, though all are stable. The incident also prompted counselling for affected staff and their families. Unit 6 remains offline, while Unit 5 was pre-emptively shut down ahead of scheduled maintenance.
Matla is a key focus of Eskom’s Generation Recovery Plan, and disciplined investigations will guide the restoration of Unit 6.
Read full article by My Broadband here
Eskom has declared all unregistered grid-tied solar power systems “illegal,” even if they do not feed electricity back into the grid. The utility has begun requiring homeowners with such systems to install additional equipment and register their systems at significant cost. Compliance includes updating the Certificate of Compliance (CoC) to meet Eskom’s stringent criteria, conducting structural assessments, and installing isolation points near Eskom meters. Customers are also required to switch to the mandatory Homeflex time-of-use tariff. Costs for these upgrades range from R27,000 to R50,000, creating a financial burden for many solar users.
For households unwilling or unable to meet these requirements, going entirely off-grid might be a cheaper alternative. Upgrading inverters, batteries, and panels—or adding a backup generator—could allow users to disconnect from Eskom and avoid compliance fees. This push for stricter enforcement may drive more South Africans to invest in self-sufficient energy systems, reducing their reliance on the grid while exacerbating Eskom’s revenue challenges
Read full article by My Broadband here
Eskom’s proposed tariff changes could significantly increase electricity bills for households with low to moderate consumption, potentially exceeding a 50% rise. Its 2025/2026 Retail Tariff Plan (RTP) and a 36.15% tariff hike application will disproportionately impact smaller users, with costs for 200kWh users doubling and 450kWh users seeing a 67% increase. These changes stem from Eskom’s push for “cost-reflective” tariffs, restructuring fixed and variable charges to recover operating costs.
Critics argue that the changes unfairly penalize lower-income households and solar users who rely less on grid power. The proposed fixed charges mean households consuming below 764kWh monthly will pay more, contradicting Eskom’s claim of average savings. Public feedback on the RTP is open until 17 December 2024, with decisions expected by early 2025. If approved, these adjustments could create significant financial burdens for many South Africans.
Read full article by My Broadband here
November 2024
News Archives
Eskom faced criticism after its late push to update 11 million prepaid meters to Key Revision Number 2 (KRN 2) caused chaos, long queues, and tragic outcomes. The update, needed to prevent meters from becoming inoperable due to token expiration on 24 November 2024, was poorly communicated, with many customers receiving notifications just days before the deadline.
While updates can still be completed after the deadline, misinformation and insufficient preparation sparked unnecessary panic. Criticism arose over Eskom’s handling of illegal electricity users, who were granted an extension. As of the deadline, nearly 2 million meters remained un-updated, exposing planning and communication failures.
Eskom’s proposed Retail Tariff Plan (RTP) will disproportionately increase electricity costs for small and medium-sized households, while those using over R2,793 worth of power per month will see reductions. Eskom plans to scrap the Incline Block Tariff (IBT), which currently penalizes high usage, and introduce higher fixed charges regardless of consumption. This approach has been criticized for burdening low- and moderate-consumption users, including many who installed solar power due to Eskom’s unreliable supply. Eskom claims the changes aim to rebalance tariffs, but critics argue they unfairly target smaller households and fail to reflect South Africa’s average household electricity use, which independent estimates suggest is far below Eskom’s 900kWh claim.
The proposed plan could raise bills for households consuming 450kWh per month by 22.3% and those using 600kWh by 16.1%, while users consuming 764kWh or more will pay less. Indigent households reliant on free basic electricity may also face challenges due to outdated allocations and poor municipal registration.
Eskom is urging prepaid electricity users to update their meters before 24 November 2024 to avoid losing power. Meters still using Key Revision Number 1 (KRN1) will stop accepting electricity tokens after this date. Once current credits are used up, these meters will become inoperable unless updated, potentially requiring replacements costing up to R12,000.
Users must buy tokens from authorised vendors before the deadline to ensure continued service. This will generate two 20-digit codes required to update the meter. Community support teams are available to assist with the recoding process.
Independent Power Producers (IPPs) now offer electricity far cheaper than Eskom, with solar and wind prices dropping to around R0.56 per kWh in recent bid windows, compared to Eskom’s R1.50 per kWh in 2023. Rising costs from corruption, inefficiency, and bloated staffing have pushed Eskom’s prices well above inflation.
With South Africa’s energy market opening to private providers under the new Electricity Regulation Act, IPPs are becoming more attractive to households, businesses, and municipalities. As customers switch to cheaper alternatives, Eskom faces shrinking revenues, escalating tariffs, and the risk of a worsening financial “death spiral.”
Eskom’s municipal debt has skyrocketed from R2.6 billion in 2014 to nearly R90 billion, severely threatening its financial stability. The debt continues to grow by roughly R2 billion monthly, with forecasts indicating it may reach R200 billion by 2028. Eskom CFO Calib Cassim warns that this trend could nullify the government’s R254 billion debt relief and force Eskom to seek further bailouts.
Despite government incentives, only a fraction of municipalities have met debt relief requirements, with many unable to cover their current electricity costs. Recently, Eskom threatened to cut power to the City of Johannesburg over an unpaid debt of R4.9 billion. The standoff eased only after intervention by the Electricity and Energy Minister, highlighting Eskom’s ongoing challenges with non-payment from municipalities despite numerous debt management efforts.
Eskom has proposed a new Retail Tariff Plan with significant changes to its electricity pricing structure. Among the key adjustments are the removal of the Inclining Block Tariff (IBT) for residential customers, new tariff rules for households with solar panels, and reduced charges for municipal distributors and large commercial users. The aim, according to Eskom, is to align tariffs with the actual costs of electricity generation, transmission, and distribution, ensuring that customers only pay for the services they use.
For solar users, the new plan means those who rely on Eskom as a backup source will still pay network usage fees but can now earn credits for excess energy fed back into the grid. Municipalities will see a simplified tariff structure with three options instead of the previous fifteen, making costs more predictable.
The City of Cape Town (CoCT) has faced criticism over the high costs associated with installing bidirectional meters for its cash-for-power programme, which allows consumers to sell excess solar power back to the grid. While the city introduced a more affordable single-phase meter at R6,043 in 2024, participants have found that additional costs, such as “meter accommodation” and underground cabling, have inflated the overall price. Some residents reported quotes ranging from R10,000 to R30,000 for the required electrical work, making the financial benefits of selling excess power less attractive.
Kadri Nassiep, CoCT’s executive director of energy, urged consumers to shop around for better prices, stating that labour costs drove up the expenses rather than the materials. However, the added financial burden has made it harder for many households to justify joining the initiative.
Critics like public policy expert Alex van den Heever argue that Eskom’s approach of repeatedly raising tariffs to solve its financial woes, with real increases of 300% since 2007, is unsustainable. Eskom’s justifications, including rising coal prices, diesel costs, and maintenance expenses, have not addressed its deeper organizational inefficiencies or inability to collect revenue. Van den Heever emphasized that while a policy change might help, a more sustainable economic model for Eskom is essential to avoid further financial decline and social unrest, especially among poorer communities already burdened by escalating costs.
October 2024
News Archives
Eskom faces a financial crisis as major customers reduce their reliance on its grid power, forcing the utility to compensate for lost sales through substantial tariff hikes. This trend has led to a “death spiral” of dwindling paying customers, as more South African households and companies turn to solar to avoid price increases and load-shedding.
Compounded by an escalating debt burden from municipalities—now at R85 billion and expected to reach R200 billion by 2028—Eskom’s financial sustainability is at risk. CFO Calib Cassim warned that without solutions to stem rising municipal debt, government debt relief will have a limited impact on Eskom’s long-term viability.
Energy expert Chris Yelland believes Eskom should focus on transmission and exit its generation and distribution businesses. With growing competition from independent power producers (IPPs) offering cheaper, renewable energy, Eskom’s rising tariffs, including a proposed 36.15% hike in 2025, make it less competitive.
Yelland warns Eskom’s strategy of increasing tariffs will lead to a “death spiral” of reduced sales and rising debt. He suggests that Eskom should leave the generation to private players and focus on its transmission division, which has been spun off as the National Transmission Company of South Africa (NTCSA).
Recent data shows that Eskom’s claim of 30kWh daily electricity consumption per household is significantly inflated. Independent sources, such as the US Energy Information Administration (EIA) and solar companies, estimate South African households consume between 6kWh to 15kWh per day. This lower consumption challenges Eskom’s justification for its proposed cost-reflective tariffs, which include higher fixed costs and lower variable charges.
Eskom’s tariff changes would disproportionately affect low-consumption households, increasing their bills by up to 82%, while high-consumption users would benefit. This pricing model could worsen the financial burden on lower-income families, raising concerns about fairness as Eskom continues advocating for its tariff structure under Nersa’s review.
Recent data shows that Eskom’s claim of 30kWh daily electricity consumption per household is significantly inflated. Independent sources, such as the US Energy Information Administration (EIA) and solar companies, estimate South African households consume between 6kWh to 15kWh per day. This lower consumption challenges Eskom’s justification for its proposed cost-reflective tariffs, which include higher fixed costs and lower variable charges.
Eskom’s tariff changes would disproportionately affect low-consumption households, increasing their bills by up to 82%, while high-consumption users would benefit. This pricing model could worsen the financial burden on lower-income families, raising concerns about fairness as Eskom continues advocating for its tariff structure under Nersa’s review.
Eskom will implement significant electricity price hikes in 2025 due to rising operational costs, particularly in coal procurement and diesel usage for peak demand periods. The utility has already committed to paying contracted coal amounts, leaving it with little flexibility despite concerns about affordability and potential non-payment from consumers. Eskom’s COO, Calib Cassim, explained that even if the regulator disallows some costs in the revenue application, the utility must still cover these expenses, further complicated by restrictions on borrowing for operational costs due to its debt relief from the National Treasury.
The proposed price hikes include a 36.15% increase for direct customers starting in April 2025, and a 43.55% increase for municipal customers from June 2025.
September 2024
News Archives
August 2024
News Archives
Recent legal challenges have highlighted the flaws in Nersa’s approach, with courts ruling that tariff hikes implemented without proper cost-of-supply studies are unlawful. AfriForum’s successful litigation against Nersa’s approval of municipal price increases exposed administrative failures and non-compliance, as many municipalities lacked the necessary studies to justify hikes. These issues have contributed to significant municipal debt to Eskom, exceeding R78 billion, and have created operational and financial challenges across the energy sector. Reforming Nersa’s regulatory framework is essential to ensuring fair and sustainable electricity pricing in South Africa.
To address these issues, Eskom is focusing on both training new engineers and bringing back experienced professionals through a partnership with the private sector, initiated by President Cyril Ramaphosa. This collaboration aims to redeploy experts to key power stations to improve reliability and increase power output. The initiative is part of broader efforts to stabilize South Africa’s energy sector and stimulate economic growth by addressing critical energy, transport, and infrastructure challenges.
The National Energy Regulator of South Africa (Nersa) has rejected Eskom’s application to reserve grid capacity for renewable energy projects under the public procurement program. This decision has raised concerns within the South African Wind Energy Association (SAWEA), which fears it could jeopardize the future of renewable energy in the country.
SAWEA is calling on Eskom and Nersa to address the grid allocation issues that are undermining the development of renewable energy and the open electricity market envisioned by the Electricity Regulation Act Amendment Bill. The association stresses the importance of collaboration between the industry and the Department of Electricity and Energy to ensure a sustainable and economically viable energy future for South Africa.
Read the full article by My Broadband here
South Africa holds the highest potential for job creation in Africa within the solar and wind energy value chains, according to the Forecasting Green Jobs in Africa report. The study, conducted by Shortlist, FSD Africa, and Boston Consulting Group, highlights that South Africa, Kenya, and Nigeria collectively represent 16% of the continent’s job creation potential, driven by factors such as population size, GDP, and industry maturity.
The report anticipates the creation of up to 3.3 million new green jobs across Africa, with the majority concentrated in the renewable energy sector, particularly solar power. Specifically, 85,000 to 275,000 new green jobs in South Africa are forecasted by 2030, primarily in energy and power production, agriculture and nature. Of these, 140,000 jobs are expected to be in the solar sector alone.
Read the full article by IT Web here
The Democratic Alliance (DA) is calling for an urgent parliamentary debate regarding the rising cost of electricity in South Africa. This comes after the National Energy Regulator of South Africa (NERSA) approved Eskom’s request to recoup R8 billion from consumers for the 2021/22 financial year, which will result in a 4% increase in electricity costs.
DA’s Kevin Mileham points out that this increase is in addition to a proposed 36.15% tariff hike that Eskom is expected to request for 2025. Mileham has written to Speaker Thoko Didiza urging for immediate discussion, emphasizing the need for swift government intervention in response to the energy price crisis, which he attributes to Eskom’s inefficiency.
Read the full article by iAfrica here.
Eskom recently announced that it has pre-coded the majority of its prepaid electricity meters, a move that could expedite the updating process and serves as a warning to those buying electricity illegally. South African municipalities and Eskom are racing to update 11.53 million prepaid meters before 24 November 2024. On this date, prepaid meters that haven’t been recoded with two key revision numbers (KRNs) will no longer accept tokens, due to a timer-linked security mechanism in the tokens.
Eskom’s pre-coding prepares meters for the issuing of recoding tokens, but customers must still manually enter the codes to keep their meters functional. As of 1 August 2024, about 4.01 million Eskom customers had updated their meters, leaving 2.89 million still needing updates. The daily update rate has decreased significantly, suggesting a need for a substantial increase to meet the deadline.
Read the full article by My Broadband here
Read the full article by My Broadband here
July 2024
News Archives
SA Fund To Raise Billions for Green Energy
31 July 2024
Gaia Fund Managers is raising $200 million (R3.6 billion) to invest in African renewable energy projects and power grids, with support from Apex Group. The fund, known as the Gaia Africa Climate Fund, will be based in Luxembourg to attract US and European investors, with Apex Group serving as the fund administrator.
Some investors have already committed to providing the first $50 million (R912 million) this year, and the fund is expected to be fully capitalized by the end of 2025. The initiative responds to the critical need for electricity across Africa, where around 600 million people lack access.
Read the full article by Bloomberg here.
R 3 500 for 0kWh
24 July 2024
Rural electricity users in South Africa, particularly farmers and agricultural businesses, have been burdened with high fixed charges on their Eskom tariffs, sometimes exceeding R1,000 per month. These fixed fees are applied regardless of energy consumption, impacting those in remote areas where electricity infrastructure is costly to install and maintain.
A community of farmers near Mossel Bay in the Western Cape reported that they have been paying significant fixed charges under Eskom’s Landrate tariffs, including an R64.03 daily network capacity charge and an R53.19 daily service charge. One farmer revealed that even with 0kWh consumption, he pays R3,516.60 monthly to access Eskom’s grid.
Read the full article by My Broadband here.
Eskom Electricity Price Pain
23 July 2024
South African households are facing a significant increase in electricity costs, with monthly bills expected to double over the next five years, reaching R4 per kWh or higher. Teresa Kok, director of One Energy, warns that Eskom is in a “death spiral,” leading to continuous above-inflation tariff hikes. This trend is pushing more consumers to consider solar power systems, which offer a stable cost of less than R1 per kWh for the next 15 to 20 years.
The financial burden of remaining on the grid is starkly highlighted, with households potentially spending R280,000 on electricity over five years, compared to the cost of a solar system that provides long-term savings and energy independence. Despite a slight decline in efficiency over time, solar panels remain a cost-effective solution, generating around 162,000 kWh over 20 years at an average cost of R0.86 per kWh.
Read the full article by My Broadband here.
Slashed Electricity Bill by R900
22 July
A household in Pretoria managed to reduce their monthly electricity bill by over 92% using an entry-level solar power system. In March 2024, they installed a system with six solar panels (3.3kW peak output), a 5kW hybrid inverter, and a 5.12kWh battery. Initially intended as backup power during load-shedding, the system was later reconfigured to maximize electricity savings.
In June 2024, the household consumed 321.94kWh of electricity, with over 91% generated by the solar system, reducing their grid usage to 28.2kWh. Without the system, their energy costs would have been R998.53, but with solar, they only paid R78.28, saving R920.25.
Read the full article by My Broadband here.