Neelam Rahim | neelam@radioislam.co.za

2-minute read
27 March 2023 | 22:45 CAT

Image: MyBroadband

Energy analyst Clyde Mallinson has warned of further electricity price increases due to Eskom having to cover the cost of increasing theft and wasteful expenditure. Earlier this year, regulator NERSA implemented an average increase in the electricity tariff of 18.65% for the 2023/24 financial year and a 12.74% increase for the following year. The increase will take effect from the 1st of April for clients that source their electricity directly from Eskom, while municipalities will increase their prices from the 1st of July.

This is despite a plea from President Cyril Ramaphosa in January 2023 for the suspension of tariff increases due to heightened costs of living and increased load-shedding severity.

Speaking to Radio Islam International, Clyde Mallison said over 10 million South Africans live in energy poverty, and it is essential for a plan to be put in place to ensure the availability of affordable electricity.

Mallison’s aspiration for 2035 envisions electricity production at 3x more than the current production at half the price.

“The plan needs direction, hard work and people to buy into the plan,” he added.

Meanwhile, to alleviate the burden on the poor, the affordability subsidy paid by industrial and urban customers will increase by nearly 30% to 7.37c/kWh. This cost is additional to the tariff charged.

Eskom had initially asked for a 32% increase for 2023/24 as part of its push for “cost-reflective tariffs”.

Listen to the interview with presenter Annisa Essack and her guest Clyde Mallinson on Radio Islam’s podcast.