Electricity Tariff Increases 2019, 2020 and 2021

Electricity meter

An article published by the Engineering News on the 7th March 2019, details the following: "South Africa Energy Regulator has granted Eskom allowable revenue of R206.38-billion for 2019/20, which will translate into a tariff increase of 9.41% from April 1, exclusive of the 4.41% hike sanctioned following an adjudication, in 2018, of three Eskom regulatory clearing account (RCA) applications.

The State-owned utility is allowed to increase tariffs to direct customers by 13.82% on April 1 2019 and further granted increases of 8.1% and 5.22% for 2020/21 and 2021/22 respectively."

Municipal tariff increases are introduced in July of each year. Therefore, by July 2021 this approximately 30% compounded increase will mean the following: 

  • Primary Schools: Present Average Electricity Costs of ±R460,000 will increase by R140,000 to R600,000.
  • Secondary/High Schools: Present Average Electricity Costs of ±R580,000 will increase by R175,000 to R755,000.

These Electricity tariff increases further underline the need for schools to invest in Energy Efficiency and Renewable Energy:

  1. Reduce Energy Demand by changing all existing Lighting to LED's - 10% to 15% reduction in Total Electricity Costs.
  2. Implement Solar PV, already financially viable at the present (2019) electricity tariffs - 40% Electricity Consumed During School Hours.
  3. Prepare the Solar PV installation for the introduction of Battery (charged by Solar PV) in 2021.
From the experience working with schools since 2012, Suntricity is able to assist schools in this energy efficiency transition. Please do not hesitate to call us on 011 534 8695 or schedule a visit by e-mail: mail@suntricity.co.za.