Happy days for those invested in the alternate/solar energy space to capitalise on the collapse of state-run Eskom, following rumours that Eskom will hike electricity tariffs by a minimum of 14.6% per year for each of the next five years. It could be more if capital expenditure is also to be budgeted for.
As a guideline, an increase of 14.6% per year will double your electricity bill every five years.
Eskom said in a statement released today that rumours are premature, but that
Electricity tariffs are not yet at cost reflective levels. They must continue to migrate towards those levels so that they can cover the full cost of producing electricity, as well as support the investment in infrastructure needed to ensure a secure supply of electricity for South Africa.
Bottom line: prices are going up, it’s just a matter of how much, 14% or 19%.
There’s huge value to be added in any and all sectors where you can offer solutions to the public to the collapse of state services. That’s where the profits are going to be for small businesses and start-ups in coming decades.