Electricity Prices in South Africa ‘Historical & Projected’
Electricity prices have increased by over 300% since 2004, and the trend is set to continue as Eskom needs to raise prices to meet maintenance costs and new builds of Medupi and Kusile
The intended nuclear program costing an estimated Trillion Rand will result in even greater increases.
Eskom’s requested price increase in 2014 for 16% per annum for the next 3 years was declined by Nersa, and only 8% was granted. However, due to Eskom’s cash constraints it is likely that increases of 15% to 25% for the next 3 years of 2016—2019 will be granted.
Price per kWh for Residential by Eskom/Municipal Supplier - Projected
An average per kWh price of R1,85 including VAT is shown for domestic tariffs in 2015, for consumption in excess of 600 kWh per month
The long term trend will continue.
Although South Africans may complain, the price of electricity in Germany in 2015 is approximately double that in South Africa. In Zambia and Zimbabwe prices increases being implemented are a massive 300% in 2016
Projected price per kWh @1.85 (2015) escalating at 8%, 9%, 10% p.a. &
(black line) 20% for 3 years and thereafter at 8%
As electricity prices increase the importance of replacing electricity with solar is obvious.