The recent 18.65% electricity hike by the National Energy Regulator of South Africa (Nersa) has cemented Cape Town’s plans to move away from its reliance on Eskom for electricity.<\/p>\n
On Thursday (12 January), Nersa approved an 18.65% increase<\/a><\/strong> in electricity price for 2023, with another 12.74% hike in 2024 for the failing national power utility Eskom.<\/p>\n Nersa announced that the decision was made due to challenging economic conditions, such as high interest rates, low growth, high unemployment and power outages.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n Cape Town mayor Geordin Hill-Lewis said the price hike was unfair, unaffordable, and unjust, adding that the city plans to reduce its reliance on Eskom’s unstable and increasingly unaffordable electricity by buying power on the open market.<\/p>\n The city said the second phase of its independent power procurement would get underway in February 2023<\/strong>. Alongside more affordable power for the Cape Town grid, it aims to provide load shedding protection over the next three years.<\/p>\n Cape Town is aiming to end load-shedding over time through various means, including:<\/p>\n “While the City is working to bring down the cost of electricity for Capetonians<\/strong> by procuring electricity from cheaper sources than Eskom, we need Eskom and Nersa to treat South Africans fairly.”<\/p>\n “The price of electricity has risen more than 500% over the past 16 years, far exceeding inflation over that time. As prices were hiked, supply became less reliable.”<\/p>\n “We will continue to oppose Eskom’s unjust price hikes by all available means while accelerating Cape Town’s path away from Eskom reliance,” said Hill-Lewis.<\/p>\n The mayor said that South Africans are being asked to pay for corruption and mismanagement at Eskom. He noted that the company has other options when it comes to raising funds rather than price hikes, including:<\/p>\n\n
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