Eskom’s Song: “We’ve Only Just Begun”
Chris Yelland and the team at EE Publishers are the gurus of all things to do with electric power. So all South Africans would do well to pay attention to their analysis in this morning’s EE News: Brace yourself – the electricity price trajectory for years to come…
The article makes the point that when the National Energy Regulator of South Africa nixed Eskom’s proposed annual rate increases of up to 35 percent . . .
Many consumers breathed a sigh of relief, but a fact that received little attention at the time was the indication by NERSA that the 25% p.a. increases allowed for 2010, 2011 and 2012 would now likely continue after 2012.
The article later adds:
Irrespective of which scenario is considered, the projected electricity prices in the draft IRP 2010 show annual increases well above inflation up to 2021, and it would appear that the golden era of Eskom price increases at or below inflation will only arrive thereafter.
And concludes:
. . . take heart! Electricity prices should level off in about ten years time. Highlight 2021 in your diary as the dawn of a new era of Eskom price increases in line with inflation. Maybe…
I ran some of these numbers through a spreadsheet to see what they might mean to my electricity bill. For Eskom to reach the prices it originally envisioned before NERSA put a lid on annual increases, 25 percent price hikes will have to continue to at least 2014. Assuming that City Power of Johannesburg passes these increases on to residential users, this means that the 68 cents per kilowatt hour we pay today could leap to R1.66 in the next 3 years.
I don’t raise this issue to increase anyone’s blood pressure. What interests me is that this information completely changes any cost-benefit analysis of investments in energy efficiency at home. Back at my spreadsheets I find that a solar hot water system that would pay for itself in 5 years at 68 cents a kilowatt hours, recoups the outlay in just 2 years at R1.66 a kilowatt hour. An efficient, variable-speed pool pump that makes sense as an investment over 7 years, suddenly makes much more sense by turning profitable in just 3 years. LED lights that were expected to cover their costs in 6 years achieve that mark in 2 1/2 years.
I don’t think that every effort to make a greener house has to pay for itself. A little bit of financial analysis does help point out the changes that can make the greatest impact for the least expense, however. Eskom may not be doing our budgets any favours, but it sure is turning the cost-benefit analysis for eco-friendly investments green.






