Alarmed about the ever increasing oil price? Anxious about the 25% electricity tariff increase scheduled for later this year? Well, things could get worse as Business Day reports that there could be a further hike in electricity rates.
As per the Ministry of Energy’s Strategic Plan 2011-12, the government is considering adjusting the tariff to help fund the R27bn cost of replacing and repairing power utility Eskom’s ageing infrastructure.
The Department of Energy is also preparing draft legislation that will allow the state to expropriate land for energy infrastructure – such as power lines or plants – where landowners insist on selling above market-related rates.
Over the weekend local newspapers reported that South Africa may face the prospect of rolling blackouts – as dire as those experienced in 2008 – due to the accidental blast at the Duhva power station in Mpumalanga in February. According to Mail & Guardian, some 600MW of power was wiped from the national grid as a result of the blast.
