Death and Taxes are the two things that we can be certain of, in these uncertain times. They’re not end-times, as many gloomists proclaim, they’re just uncertain times.
One of the sub-headers under the ‘Taxes’ header has to be electricity. No matter which way you look at it, it’s going to be climbing in price for as long as you and I live. I mean, it’s never going to come down in price, is it? As certain as death and taxes, Eskom are going to raise their tariffs.
It’s a funny old place that those good people at Eskom find themselves in right now. They have literally worked themselves into a corner, and there is no way they can extricate themselves from their financial situation.
Loadshedding has stopped, so the spotlight is off them for now, but the reason behind this is where we need to look. As more and more individuals and businesses in South Africa realized that the only way to deal with loadshedding is to do it themselves, and as more and more home photovoltaics and solar business solutions started popping up, so the demand for Eskom power started diminishing. So many people are using energy from the sun now, that Eskom is not as imperative in every household as they thought they were for so long.
Along with the decreasing demand in electricity, a radical downturn in the economy has seen the demand for electricity from businesses decline radically. Not a good sign at all, but it’s the truth, and a signpost to the future.
What choices does Eskom have?
In order to keep working, to keep their power stations going and to keep thousands of people employed, they are going to have to raise their prices. As the demand decreases, so they will have to raise prices accordingly, in order for it to be business as usual. As their prices continue to rise, so the demand will decrease, leading to a vicious cycle of increases…
Eskom is also in the process of building more power stations, be they nuclear or coal, and these stations cost large. Like, seriously large. The only way to be able to afford to build these behemoths is if they have the cash, which will be also be supplied by us, the consumers.
There has never been a better time to opt for independence, or partial independence, from Eskom. It’s a sound financial investment, and as the rest of the country starts screaming with the next tariff increase, you (and I) will be immune to it, so to speak.
So have a look at some of the Genergy solutions, and get yourself ready for what’s to come. Death and taxes, and Eskom price hikes.