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Eskom’s new tariff plan: A balancing act for South Africa’s energy future

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Eskom's latest tariff proposal has ignited widespread debate, leaving many South Africans, particularly solar users, uncertain about what lies ahead. While tariff reviews are necessary for creating a sustainable and equitable electricity system, they require careful consideration to avoid unintended consequences.

At the heart of the controversy is Eskom’s push to increase fixed charges, claiming that 73% of its costs are fixed; a figure that some argue oversimplifies the complexities of electricity generation and distribution.  

The proposed higher fixed charges for solar users have sparked concern, with critics labeling it as a punitive measure that could stifle renewable energy progress. Eskom’s proposal highlights the intricate balance required in tariff reform: ensuring cost recovery without discouraging energy efficiency or innovation.

 We are joined on the line by Patrick Narbel, co-founder of GoSolr.

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