South African electricity prices – 1994 to 2015

This graph shows how Eskom’s prices have increased over the past 20 years, while electricity production has fallen.

By - June 25, 2015 Share on LinkedIn
Eskom winter

Eskom has asked the National Energy Regulator of South Africa for an additional 9.58% electricity price increase for the coming year.

If successful, this will bring a hike in power prices of 24.78% for 2015/2016.

Energy experts, businesses owners, and political parties have called for the price increases to be blocked, saying that South Africans cannot afford to pay more for electricity.

Three local university professors made a submission to the energy regulator regarding the tariff plans, detailing the rise in electricity prices over the past 20 years.

Raymond Parsons and Waldo Krugell from North West University, along with Gavin Keeton from Rhodes University, said if Nersa grants Eskom the increase, the “electricity price will appear to have doubled since 2009, with no end apparently in sight”.

The infographic below, based on their submission, details the increase in the price of electricity from 1994 to 2015 – compared against the amount of energy Eskom has produced in the same period.

Electricity - Price vs Production

Electricity – Price vs Production

Besides the discrepancy between the price hikes and power output, the approved tariff increases since 2008 have far exceeded inflation.

The infographic and table below, based on the professors’ submission, shows the large gap between approved electricity price hikes and inflation from 2008 to 2014.

Approved Tariff Increases vs Inflation

Approved Tariff Increases vs Inflation

Approved Tariff Increases vs Inflation: 2008 – 2015
Year Average approved tariff increase Average yearly inflation
2008 27.5% 11.5%
2009 31.3% 7.1%
2010 24.8% 4.3%
2011 25.8% 5%
2012 16% 5.7%
2013 8% 5.7%
2014 8% 6.1%
2015 Possible 24.78% Estimated 6%

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