Thu. Jun 20th, 2019

Then vs now: How much Eskom’s electricity prices have increased since 1970

Our electricity prices looked pretty lovely until we were introduced to the spectre of load shedding more than a decade ago. Eskom have got us by the bulbs, here.

The post Then vs now: How much Eskom’s electricity prices have increased since 1970 appeared first on The South African.

then vs now how much eskoms electricity prices have increased since 1970 - Then vs now: How much Eskom’s electricity prices have increased since 1970

With Eskom’s new tariffs coming into effect this week, people are set to fork out more for their electricity prices in the foreseeable future. Eskom have managed to add 13.86% onto this year’s revised prices, with rates surpassing the 90-cents-per-kilowatt-hour mark.

Despite the incompetence at the top that has lead to severe bouts of load shedding over the past four months, the power utility didn’t flinch. Nersa even granted them the right to crank up tariffs over the next three years, meaning South Africans will be paying 22.7% more for their leccy by 2022. Aren’t we blessed?

Eskom electricity prices for April 2019

The Council For Scientific and Industrial Research (CSIR) have recently released data which details how our electricity prices have changed over the last fifty years. Of course, everything is relative based on inflation, so they’ve included the percentage of each yearly increase alongside the tariff. Clever, isn’t it?

b9c34ee1 eskom prices - Then vs now: How much Eskom’s electricity prices have increased since 1970
Photo: CSIR

The dotted lines you can see represent the c/kWh price, and the bar charts help visualise how much they’ve gone up on a yearly basis. There are three key events to be aware of which dictated the ebb and flow of the rate:

  1. From 1972 – 1990, large coal unit sizes were dramatically increased, which prompted an increase in tariffs.
  2. However, this was offset by a “surplus of energy” from 1990 to 2008 and that brought prices down.
  3. Then, the lights went out. Issues with load shedding from 2008 onwards have seen electricity prices spiral.

Eskom electricity prices over the past 50 years:

The data shows that tariffs between 2007 to 2017 increased by an eye-watering 333%, with this figure set to rise to 490% by 2021. Eskom’s prices broke their highest ever rate in 2011 and continued to rise year-on-year ever since:

The good – cheap rates and a surplus

  • 1970: 37c/kWh
  • 1975: 33c/kWh
  • 1980: 57c/kWh
  • 1985: 62c/kWh
  • 1990: 58c/kWh
  • 1995: 40c/kWh
  • 2000: 33c/kWh
  • 2005: 31c/kWh

The bad – load shedding makes itself at home

  • 2008: 40c/kWh
  • 2009: 49c/kWh
  • 2010: 60c/kWh
  • 2011: 70c/kWh
  • 2012: 78c/kWh
  • 2013: 79c/kWh
  • 2014: 79c/kWh
  • 2015: 85c/kWh
  • 2016: 85c/kWh
  • 2017: 84c/kWh
  • 2018: 89c/kWh

The ugly – what’s left to come

  • 2019: 98c/kWh
  • 2020: 105c/kWh
  • 2021: 109c/kWH
  • 2022: 116c/kWh

The post Then vs now: How much Eskom’s electricity prices have increased since 1970 appeared first on The South African.

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