By Daniel Itai, Johannesburg, South Africa
Energy expert, Ted Blom, has envisaged a year on year increase in electricity tariffs of more than 25 percent unless the sole state owned electricity supplier, Eskom, gets its house in order.
To date, Eskom has been marred by a lot of corruption which has since immersed it in financial irregularities with consumers bearing the brunt through sporadic tariff hikes, load-reductions and load-shedding.
“In 2001 it was voted the world’s best entity but due to corruption, Eskom is now owing creditors R450 billion (US$27 billion).
Next year, consumers should expect a 35 percent tariff increase with a yearly tariff increase of more than 25 percent,” said the energy expert.
However, President Cyril Ramaphosa has since given the nod to allow private entities to generate and supply electricity to consumers which could salvage them from incurring tariff hikes every year.