Tag Archives: Eskom’s DSM Programme

Eskom generates about 95 percent of the electricity used in South Africa. The company has been battling with electricity shortage since January 2008, but its problems date a decade earlier and are due to lack of investment in new capacities and in updating the existing power stations. Last year, Eskom increased its tariffs by 31 percent and asked for 35 to 45 percent annual increases for three years in order to scrape together about R400 billion needed to build new power plants. However, in February 2010 the National Energy Regulator of South Africa (Nersa) approved lower increases: 24.8 percent for 2010/11 financial year, which will bring the average Eskom electricity price to 41.31c per kWh; 25.8 percent for 2011/12, bringing the average Eskom electricity price 51.68 c per kWh; and 25.9 percent in 2012/13, making the average Eskom electricity price 65.06c per kWh. Eskom will use part of the money it gets from the higher rates towards increasing its solar water geyser subsidies, from about R2,500 to about R7,000. The cost of subsidizing solar geysers is lower than the cost of building a new power station. With the new subsidy in place, almost half of the cost of a solar … Continue reading →