"Cost reflective tariffs" in an environment where costs are 3 times higher than they should be:-
The SADC ministers met yesterday and spoke about "cost reflective tariffs". For Medupi this is R1.20 per kWh and for Nuclear R1.60 per kWh.
These are cost prices to Eskom. So homeowners can expect another 100% increases in electricity prices to achieve 'cost reflectivity'.
But: renewable energy is already at R1.50 for homeowners who are paying R2.14 in City of Cape Town!
A friend of mine did 40 renewable energy installs in Cape Town in the past three months. All systems so that people and businesses don't have load shedding.
And we are now very close to grid parity with batteries.
My thesis is that the SADC utilities must work with what I call Rooftop Owner IPPs to solve our energy and unemployment & water & cost of living & pollution crises.
Any other form of intervention is a waste of time and is driving customers away.
Note that I told a this to Ian Nielsen in Nov 2013, and even though he is the CFO of the City of Cape Town, he said that tariffs are the problem.
The sad truth is the SADC governments don't want to work with their electorate, and soon we wont need governments anyway as we take responsibility for ourselves and move back to city states.
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