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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 Urges Eskom to Drop Solar Registration Fees Permanently
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
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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
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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
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August 2024
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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
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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.
