Eskom has been asked to look at alternatives to reducing its price increase requirements from the National Energy Regulator of South Africa (Nersa).
President Jacob Zuma said he has asked Eskom to seek options on how the price increase requirement may be reduced over the next few years.
“This will be in support of economic growth and job creation and give me proposals for consideration,” said Zuma during his fourth State of the Nation Address on Thursday.
The President had taken cognisance of on-going concerns from business and communities regarding high electricity costs.
Eskom applies for tariff increases from Nersa. In 2010, the regulator granted the power parastatal a 24.8 percent tariff increase, followed by a 25.8 percent and 25.9 percent tariff increase for the periods 2011/12 and 2012/13 respectively.
Zuma said an electricity price path should ensure that the power utility, as well as industry, remains financially viable and sustainable but at the same time remains affordable, particularly for the poor.
“However, to achieve sustainability, a pact will be required with all South Africans including business, labour, municipalities, communities and all customers and suppliers and we must save electricity,” he said.
The President stressed that for the next two years, the county’s electricity system will remain tight until the first units of the Medupi and Kusile power stations come into operation.
“We should all play our part in order to avoid load shedding and South Africa will continue to search for renewable energy sources, especially solar electricity and biofuels.”
Over 220 000 solar geysers to date have been installed nationwide. - BuaNews
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