Overhaul of SA electricity pricing needed

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Light Bulb Electricity
(Picture: Unsplash)

South Africa’s pricing system for Eskom encourages the skipping of maintenance at its power plants.

The Organisation Undoing Tax Abuse (OUTA) argues that instead of operating as a traditional business the power utility is allowed to approach the energy regulator and ask for a tariff hike. It says this does not force Eskom to rethink of how to operate efficiently.

Outa is also advocating for government to formulate a clear energy policy that will centres around renewable energy.

Despite its failings Eskom has been rewarded with a 9.6% tariff hike. Another burden for South African citizens who have to look to other sources of power during rolling blackouts. Eskom has imposed Stage 4 load shedding on the nation.

 

 

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May 20, 2022
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