Eskom cannot depend on tariff hikes alone to combat financial woes - energy expert

South Africans could be paying more for electricity from April next year, pending approval of the power utility’s latest three-year revenue application by the National Energy Regulator of South Africa.

Carel Snyman told Jacaranda FM Eskom has, over the last 15 years, increased tariffs by 800%.

He said this has had a direct impact on the pocket of the consumer.

“I don’t believe that tariff hikes are the only solution to Eskom’s problems, I do believe that Eskom should also reach out to private sectors and some of the solar installations offer proper energy in the middle of the daytime,” Snyman added.

He said with Eskom’s debt it is unfortunate that South Africans will have to carry the burden of constant tariff hikes.

Waldo Krugel, an economist from North West University, meanwhile, insists the proposed hike will have a hard knock-on effect on households, already struggling, as many await to see relief from recent petrol price reductions and a cut in the repo rate.

“Eskom needs to deal with their debt and the debt owed to them, a huge hike in tariffs will cause bad macro consequences that we cannot take now,” he added.

Electricity and Energy Minister Dr Kgosientso Ramokgopha has promised to introduce an intervention policy before NERSA makes a final decision

ALSO READ