- It's all doom and gloom at Eskom despite the energy producer's success in court after it postponed air quality compliance timelines
- However, Eskom will have to face reality at some point and that includes a R300 billion pollution fine and a loss of power production
- This would result in consumers paying more for less power as Stage 8 load shedding would come into effect
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JOHANNESBURG - Electricity prices are predicted to rise after Eskom faces a whopping R300 billion pollution bill.
The power utility has successfully managed to appeal against the department of forestry, fisheries and the environment's opposition to Eskom's application to postpone air quality compliance timelines.
If the air quality measures come into place, Eskom would be forced to shut down Matimba and Medupi power stations which are running above legal limits.
This would plunge South Africa into continuous stage 8 load shedding, the two power plants produce a third of the country's power.
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Eskom's success in the court has just kicked the can down the road and the air quality compliance timelines will be reviewed in 2022.
Experts believe that higher costs and load shedding will be inevitable according to TimesLIVE.
Energy policy specialist and adviser Anton Eberhard predicts that South Africans will face power price increases of 20% a year to cover Eskom's operational costs and load shedding would not go away.
Mervyn Abrahams of the Pietermaritzburg Economic Justice and Dignity Group said that a 30% power price hike would be a disaster.
He said that it would lead to a downward spiral as consumers use less electricity while costs for Eskom continue to rise.
The knock-on effects of a power price increase would also hike the prices of nearly everything as it impacts the supply chain.
MyBroadband reported that Eskom would double down on its 20.5% tariff increase from January.
Eskom's chief financial officer Calib Cassim argued that the cost of buying power from independent power produces (IPPs) was a factor of the power price hikes.
Even with the price hikes, Eskom would still need government support of around R21 billion over the next two years just to service its debt.
Eskom makes billions in interim net profit, says full-year loss on the cards
Earlier, Briefly News reported that Embattled power utility Eskom has reported higher than expected interim half-year profits for the period ended September, ensuring a 4 000 per cent improvement.
It means the national supplier saw R9.2 billion in net profits but still expects to incur a loss of R9.1 billion when the financial year ends in March of next year.
CEO Andre De Ruyter made the announcement on Wednesday, noting the profit is a bigger improvement compared to the same time last year, eNCA reported.
Source: Briefly News