Eskom electricity price increases… just in time for Winter

The lastest Eskom electricity price increase is here.  And unfortunately, it’s not an April Fool’s day joke.

Yet another increase

In the 4th major price increase from Eskom since 2008, consumers can expect to pay 25.8% more for their electricity.  The average price of electricity will go up by 10.7c per kilowatt hour(kwh), from 41.6c last year to 52.3c per kwh.

Initially the tariff increase will affect only those consumers who are supplied with electricity directly from Eskom.  Consumers who receive their electricity from municipalities will likely only see the effect of the increase after 1 July, when municipalities implement their price adjustments.

With this being the 4th electricity price increase since 1 April 2008, the overall effect is an average increase of 260%.  The actual effective electricity tariff increase is difficult to pinpoint, as it depends on a varied tariff structure that sees bigger increases for those who use more electricity.  Larger households and businesses will experience higher than average electricity price increases as the effect of the sliding scale escalates with usage.

Impact on households

The example below illustrates the effect ofthe latest increase on an average family household of four people:

Current monthly electricity cost : R1 200

New monthly electricity cost         : R1 510

Average monthly increase in electritity  :  R   310

Total annual increase in electricity cost :  R 3 715

And that’s only taking this year’s increase into account.  Eskom has indicated that it will be applying for increases up until 2014 as part of the next Multi Year Price Determination (MYPD3).  Energy industry analysts expect that these increases will be in the region of 25% per year.

What that means is that the same household of four will be paying nearly R3000 per month for the same amount of electricity by 2014:

Current monthly electricity cost : R1 200

New monthly electricity cost   : R1 510

2012 monthly electricity cost : R1 888

2013 monthly electricity cost : R2 359

2014 monthly electricity cost : R2 949

A solution

A solar water heating system is one of the only effective long term solutions for reducing your electricity bill by reducing your electricity consumption.  A properly sized solar water heating system can save between 30% and 60% of a household’s overall electricity bill.  And if it is an Eskom accredited system, then it will also qualify for a solar water heating rebate of up to 45% of the total cost of the system, fully installed.  Taking into account the most recent Eskom electricity price increases and the current Eskom rebates, a properly sized solar water heating system will pay for itself in less than two years.  After that, your hot water is free.

Contact us for more information about solar water heating

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Friday, April 1st, 2011 - News

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