The recent electricity price hikes by Eskom have severely impacted the South Africa’s vulnerable households. Eskom increased tariffs for direct customers by 18.65% in April 2023, and municipalities followed with similar rate hikes for their customers from July 1st.
The Central Energy Fund’s latest data indicates that petrol and diesel prices are expected to increase next month in South Africa. Motorists may face a 20-25 cents per litre price hike for petrol and an almost 60 cents per litre hike for diesel.
Only 50% of the renewable energy projects procured during Bid Window 5 in South Africa have come online, while the rest have failed to reach financial close.
Issues like rising borrowing costs, unsustainable tariff pricing, and aggressive bidding to win contracts have contributed to the inability of several projects to proceed.
According to Matthew Cruise, head of business intelligence and public relations at Hohm Energy, South African residents should expect load-shedding to continue for the next decade, and its intensity may even double over the next five years.
South Africa’s Electricity Minister, Kgosientsho Ramokgopa, announced that the country will prioritize the expansion of its grid over the next decade to address power shortages and end daily power cuts.