{"id":68991,"date":"2014-09-21T00:05:27","date_gmt":"2014-09-20T22:05:27","guid":{"rendered":"http:\/\/businesstech.co.za\/news\/?p=68991"},"modified":"2014-09-20T09:57:13","modified_gmt":"2014-09-20T07:57:13","slug":"sa-electricity-prices-vs-africa-vs-the-world","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/trending\/68991\/sa-electricity-prices-vs-africa-vs-the-world\/","title":{"rendered":"SA electricity prices vs Africa vs the world"},"content":{"rendered":"

A new research report highlights the impact SA power utility Eskom’s tariff structures and tariff increases has had on typical South African households.<\/p>\n

Thembie Chehore, research associate for energy & environment at growth consulting firm Frost & Sullivan Africa, said that Eskom has been under scrutiny for a number of reasons mostly relating to load-shedding and high levels of inefficiency.<\/p>\n

Constant tariff increases under the multiyear price determination (MYPD) programme is another major source of discontent towards the utility,\u00a0Chehore said.<\/p>\n

According to F&S, part of Eskom\u2019s justification for its price hikes has also rested on the claim that historically South Africa has had some of the lowest tariffs in the world.<\/p>\n

The tariff increases have grown from a modest rate of 5.1% in 2006\/7 to a peak of 31.3% in 2009\/10.<\/p>\n

A comparison of average electricity tariffs in 2011 using information obtained from the Organisation for Economic Co-operation and Development (OECD), and past Frost & Sullivan analysis, proves this claim to be true.<\/p>\n

\"World<\/a><\/p>\n

Frost & Sullivan further identified that South African tariffs are comparatively low, not only in the industrial sector, but in the residential sector as well.<\/p>\n

The advisory firm also compared the current residential tariffs in select African countries as of June 2014.<\/p>\n

It noted that given Eskom\u2019s assertion that the average monthly household consumption is 500-750 kWh, this analysis was based on a monthly residential consumption of 500 kWh.<\/p>\n

\"African<\/a><\/p>\n

SA’s electrification rate of 85.3% (as of 2013) is higher than those of the world, developing world and Sub-Saharan Africa at 80.5%, 74.7% and 30.5% respectively.<\/p>\n

F&S said that the country’s power utility has made phenomenal progress in connecting South African households to the grid; between 1994 and 2014, the utility was able to connect 5.7 million households.<\/p>\n

However, it was unable to achieve the goal of universal electrification by 2014. As of the 2011 census, 3.3 million households were yet to be connected.<\/p>\n

More on Eskom<\/h3>\n

Eskom to get funding package<\/strong><\/a><\/p>\n

Half a million rand for every Eskom employee<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

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