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Electricity Prices Soar in RSA Saturday 25th of March 2006 With increased power cuts in the Western Cape and planned investments into electricity infrastructure by Eskom, South African tax payers will have to foot the bill. According to the latest media reports in South Africa, electricity tariffs will rise by 5.1% this year, followed by a 5.9% rise in 2007 and another 6.2% in 2008/09. This is done to finance developments projects and investments into the electricity sector. In total, electricity tariffs in RSA will increase by 17.2% in between now and early 2009. This will also have consequences for Namibian consumers. In its latest newsletter published this month, Namibia’s Electricity Control Board (ECB) warns that soaring electricity prices for Namibians were inevitable this year, because of the problems experienced in South Africa, since its nuclear power plant at Koeberg has problems with 1 of its 2 turbines. By the end of June, NamPower’s 10-year old contract for electricity imports with Eskom ends and must be renegotiated and at a much higher price. From July onwards, Windhoek residents will have to pay their bills to "CentralRED", the last of the 5 regional electricity distribution companies to be established. The Windhoek municipality will only be a shareholder in this company. |
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