Broadcast Type: News; Professor Raymond Parcels from North West University Business School warns about broader economic consequences of rising electricity tariffs and their ripple effect on the economy.
channel africa and you have got something in common they have a knowledge thirst for africa in business on channel africa days week from one to two p m central african time south africans were dark left in the both literally and figure critically reintroduced when eskom load shedding for the first time in ten months this past friday while rolling have since blackouts been suspended concerns remain country's over the energy security adding to the pressure national the energy regulator of south africa nersa recently approved a twelve point seven percent electricity tariff increase sparkling strong reactions from businesses labour unions and energy experts our reporter lebogang mabanga been following has this story and report brings us this on friday eskom revealed the implementation stage three of load shedding due to several failures system at critical power stations however by minister sunday of electricity kgosientsho ramokgopa rolling declared that the blackouts would be suspended at briefing a media on friday ramokgopa provided an explanation the events of that ultimately led to the decision to initiate load shedding we had a situation where at two of our best performing stations power really mathimba and lethabo where we had a number of units failing at of the beginning a of of the week so that's the second matrix in that perfect storm the third one was and that the there other units that were delayed in as coming back so a result of that is that what that meant for most of the week we had to rely on our open cycle turbines essentially gas in layman's work where we burning diesel were remember the peaking plants are designed to do exactly that to help us be able to to stave off a the intensification of load shedding or the initiation of load shedding while the power crisis remains concern a key south africa are also feeling the financial impact of rising electricity tariffs professor raymond parcels an economist at north west university business warns school of the broader economy consequences of latest increase the although the nersa decision on the eskom tariff application is only about of what one third eskom was originally seeking have it will a tangible cost impact on the economy when electricity tariffs raise effect they have a ripple on cost levels throughout the economy must also remember we that after april first local the authorities also add a surcharge higher to the eskom tariffs the general industries workers union of south africa giwusa has strongly condemned tariff the hikes saying they disproportionately impact low income households and small businesses mametswe sibe is president of the giwusa the general industries of south africa workers union vehemently reject them energy the national regulator of south africa's decision to approve electricity tariff increases of twelve point seventy percent four for twenty twenty-five twenty twenty six point thirty five six percent for twenty twenty twenty twenty seven six and six point nineteen percent for twenty twenty seven twenty twenty eight this decision reflects another cruel determination on the part the on of the ruling elite country in this to make the working and people middle class bear the full burden of of the crisis the city as south africans grapple with rising costs and an unreliable power supply believe some the situation could accelerate the share shift towards renewable energy professor parcels says the transition to alternative energy sources is becoming more urgent rising electricity costs will be accelerate the transition to alternative energy sources for both businesses and households government must partner on a continuing basis with the private sector to further the renewable scenario and make it more accessible friendly and user there are still a number of bureaucratic impediments that hinder the accessibility of consumers business and to renewables and it's cooperation between private sector the the main stakeholders including eskom is needed to overcome that that the minister electricity of ramokgopa acknowledges the need solutions for long term to ensure a stable energy supply are at we a point where for purposes protecting of the grid and the integrity system we of the need to maintain the margins the reserve so if you have to ask as me we sit here even during the peak we have enough to support ourselves we but we don't have we have depleted the reserves we have taken a conscious decision that we are not following records so what is the record ideally we want to say a year without requiring or proceeding but no can't be way that at the expense of the system while the tariff hikes remains a contentious issue the broader debate around south africa's energy continues crisis the question remains how long can consumers and businesses afford to wait for real solutions reporting for channel africa i am lebogang mabanga in johannesburg south africa get the news music and lifestyle of africa on channel africa the african 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