First Look Blog

Articles written by the First Look team.

Anticipating Electricity and Water Tariff Increases 2016/2017

Published by Ken Nunes on 17/03/2016

First Look’s article dated 1st July 2015 and entitled 2015/2016 Electricity and Water Tariff Increases, reported on the increases of electricity and water for the year 2015/2016, which came into effect (as it does every year) on the 1st July. Back then we reported: Imagine the not uncommon scenario that your schools' present annual Electricity bill is R200 000 and Water R300 000, you will be paying an additional R66,380.00 per year.
The National Energy Regulator of South Africa (Nersa) granted Eskom a 9,4% electricity tariff increase from July (although Eskom had applied for an increase of 16%). This will of course be passed on to the Municipality, to which will be added the Municipality’s’ own “management costs”.
With considerably more data available over the last 12 months, we can now report that the combined annual average cost of electricity and water for schools is: Primary Schools R450 000 and for Secondary/High Schools R800 000.
Anticipating an average increase for electricity and water of 10% for 2016/2017, this would effectively mean the following:

Primary Schools:

Present Cost      Increase             New Cost

R450 000             R45 000              R495 000

Secondary/High Schools:

Present Cost      Increase             New Cost

R800 000             R80 000              R880 000

The importance of understanding your school’s electricity and water consumption continues to be a priority and of equal importance to mitigate these increases through the implementation of energy efficiency measures.

Do count on FirstLook™ to accompany you through this process