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Eskom Price Hike In April

Eskom are asking for a 20.5% price increase as of April 2022.

Eskom are saying that they have to use 13.8% to cover carbon tax (the thing that is meant to force them to move away from “dirty” energy) and account for independent power producers. 7.5% will relate to funds they want to use on infrastructure and expenditure (ensuring things work).

The National Energy Regulator of South Africa (Nersa) are reviewing the application (but have not debated it officially) and say that many factors have changed since the original request was made and so have been hesitant to grant it. They may also just want to avoid looking like the bad guys in allowing such a massive jump during an economic disaster. Eskom has decided to push the matter and asked the courts to force the issue so that the new tariffs can be in place by April 1st 2022 (for direct clients).

While it is not 100% guaranteed that Eskom will get exactly what they have asked for, based on their calculations, it is likely that a massive price hike is coming that will be somewhere close to the 20%.

Budget Now

If you are in the very good habit of planning and tracking what you will spend each month then it might be beneficial now to adjust your budget to allow for higher energy costs (eg an extra 20% for your electricity). You might as well start now so that you are used to the change when it happens.

You should also keep in mind that others may begin to charge more for their services due to having to cover such an increase in costs (eg a supermarket that keeps fruit and veg fresh in big coolers or freezers).

‘speak to a Debt Counsellor who can help you draw up a monthly budget’

If you are struggling to balance what you earn with what you spend then speak to a Debt Counsellor who can help you draw up a monthly budget, taking into account all your obligations and debts.