SA needs more efficient energy system to curb tariff hikes – Energy Council
Energy Council South Africa CEO, James MacKay, warned on Wednesday that it is becoming increasingly expensive to generate electricity.
The warning comes amid reports that Eskom would be seeking massive tariff hikes over the next three financial years.
While admitting that the price hikes are partly due to recovery from load shedding, MacKay said there is a need for a transparent pricing system.
“We do need to drive forward for a more efficient system with the least cost impact for all consumers that will take time. These costs are in a system and so we do have to recognise it and deal with it.
“But, immediately it highlights the importance of things like grid expansion, market reform, addressing the role of sustainable municipalities, all of which will unlock huge investment in new generation as well as modernisation and capacitation”.
Speaking at a meeting between the cabinet and the business sector at the Union Buildings, MacKay also said the government is confident that load shedding would soon be a thing of the past.
South Africa has gone more than 140 days without the dreaded power cuts.
“It was highlighted that we are approaching 150 days load shedding free which will be a major milestone and the business efforts at the power stations are continuing”.
Electricity and Energy minister Kgosientsho Ramokgopa on Monday cautioned that, while there are major improvements at the power utility, Eskom is still facing difficulties.
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