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Eskom’s price increase takes effect

Eskom’s financial situation resembles the black hole of doom and while some are celebrating the fuel price reduction many saw darkness close in on Monday when the power utilities price increase for municipalities was implemented.

The National energy regulator of South Africa (Nersa) approved a 15.63 percent average price increase which came into effect on July 1.

The result is that if you utilise 500KW of electricity you will be looking at paying an additional R150 per month however, those who are considered to be living in an affluent area will have an extra R200 surcharge added to their bill.

eNCA reported that the Organisation Undoing Tax Abuse (Outa) Energy Portfolio Manager Ronald Chauke appealed to the public to continue paying their electricity bills but said that government needs to take control of the price increase as if users are unable to pay for their electricity due to the high cost the utility will run at a loss and the service will fail.

If residents do not pay for the electricity usage we will be facing rolling blackouts.