Minister Ramokgopa outlines government’s plan to offset rising electricity costs
Minister Ramokgopa outlines government’s plan to offset rising electricity costs! Electricity and Energy Minister Kgosientsho Ramokgopa has assured Parliament that the government has put measures in place to cushion households from the impact of rising electricity costs.
Among these interventions is the expansion of the Free Basic Electricity (FBE) programme, which aims to assist low-income households struggling to keep up with the rising cost of electricity.
Ramokgopa’s statements were made in a written parliamentary reply in response to concerns over new tariffs and Eskom’s operational challenges.
Government Acknowledges Financial Strain
The minister acknowledged the financial strain that the 12.7% electricity tariff increase, set to take effect on April 1, will have on consumers and businesses.
However, he explained that the increase was necessary as part of a broader strategy to stabilise Eskom’s financial sustainability.
“While we understand the difficulties that many households and businesses will face due to this adjustment, it is essential for the long-term stability of Eskom, which remains a critical part of our energy supply,” Ramokgopa stated.
Cost-Saving Measures at Eskom
In addition to raising tariffs, Ramokgopa noted that Eskom is implementing cost-saving efficiencies to lessen the financial burden on consumers.
Although he did not provide specific details on these efficiencies, Eskom has been working on reducing operational costs, improving revenue collection, and investing in maintenance to improve power station performance.
These steps are expected to mitigate the impact of rising electricity costs while ensuring that Eskom continues to meet South Africa’s energy demands.
Expansion of the Free Basic Electricity Programme
The Free Basic Electricity (FBE) programme, which provides a certain amount of free electricity to indigent households, remains a key initiative in helping the most vulnerable communities.
Ramokgopa revealed that the government is working on policy proposals to increase the quantum of free electricity allocated to qualifying households.
Furthermore, he noted that the government is exploring a more targeted approach to ensure that relief reaches those who need it most.
This suggests that eligibility criteria may be adjusted to accommodate more low-income households, providing greater access to subsidised electricity.
Improvement in Eskom’s Energy Availability Factor
On the operational side, Ramokgopa pointed out a notable improvement in Eskom’s Energy Availability Factor (EAF).
He stated that the EAF has improved to 61.56%, reflecting a 6.8% increase compared to the same period last year.
This improvement is crucial because the EAF measures the percentage of Eskom’s power generation capacity that is available for use at any given time.
A higher EAF means that more power stations are operational, reducing the risk of load shedding and supply disruptions.
Balancing Affordability and Sustainability
Ramokgopa’s statements indicate that the government is attempting to strike a balance between keeping electricity affordable for consumers and ensuring that Eskom remains financially viable.
While the tariff increase may be unpopular, it is part of a broader strategy to strengthen Eskom and improve energy security in the long term.
However, expanding the FBE programme and improving Eskom’s operational efficiencies could help mitigate the impact of the rising electricity costs, especially for low-income households.
What’s Next?
As the new tariffs take effect on April 1, consumers will be watching closely to see how the government’s interventions play out.
The expansion of the Free Basic Electricity programme and Eskom’s ongoing improvements will be critical in determining whether households can cope with the rising costs and whether power supply stability can be maintained.
For now, South Africans will have to brace for higher electricity bills, while hoping that government interventions provide some relief.
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