17/10/2024
South Africa recently witnessed the unbundling of Eskomโs transmission function with the launch of the National Transmission Company SA (NTCSA), which was hailed as a significant step toward creating a more competitive and democratised energy sector.
While this is positive news for the countryโs energy future, it is important for businesses to brace for significant short-term cost increases.
Eskom has requested a staggering 44% electricity price hike for 2025, following the 18.64% and 12.74% increases in 2023 and 2024 respectively. With electricity prices projected (by us) to rise by 15% year-on-year over the next five years, energy costs are set to spiral out of control.
As noted by Forest Energy's energy expert, Matthew J. Cruise (MBA, BSc Eng) Cruise, in this article by News24 South Africa on Eskom's unbundling and the current reliance on diesel generators, the the energy price crisis is accelerating in the short term:
https://www.news24.com/citypress/news/unbundling-of-eskom-ntcsa-a-step-towards-a-democratised-energy-sector-20241010
While load shedding has been temporarily suspended, Eskom's financial model is unsustainable, and businesses will continue to feel the pinch of rising costs.
This presents a strong financial case for for businesses to turn to solar power, which provides immediate and long-term financial relief. Through Power Purchase Agreements (PPAs), companies can install solar energy systems at no upfront cost, allowing them to realise savings of up to 30% on their electricity bills from day one.
Now is the time to take control of your energy future and protect your business from escalating electricity prices. To learn more about how Forest Energy can help your business save on electricity costs through solar PPAs, contact us today.
According to Matthew Cruise, an energy expert at Forest Energy, the launch of the NTCSA signals the beginning of a more competitive and sustainable energy landscape for South Africa.