Mayo Dairy: SA - Energy Management Services Progress Report
NEWS ARTICLE
Electricity in South Africa is among the most expensive in the world, a new survey from NUS Consulting has shown. According to the group’s International Electricity & Natural Gas Report and Price Survey 2013, South Africa has the most expe expensive natural gas and the 15th most expensive electricity out of 18 countries surveyed. Electricity prices in South Africa showed the third highest increase of 12.3% over the survey period, while the price of natural gas rose ricity third-highest 101.7% to 12.55 US cents (R1.25) per kilowatt hour. Electricity prices in SA are set to increase by an average of 8% for th coming year 2013/14, in line with the Multithe -Year Price Determinant (MYPD) granted by National Energy Regulator of South Africa (Nersa) earlier this year. “The short and long term outlook for electricity is for prices to increase as Eskom continues to deal with generation and infrastructure deal costs,” the NUS report said. Looking at gas Aside from PetroSA, which produces gas for its own purposes, the gas market in South Africa is dominated by Sasol Gas. According to NUS the survey, Nersa has applied a cap on gas prices in order to protect consumers, but has approved allowable revenue of R936 million for the 2013 financial year running from July 2013 to June 2014 and R1 billion for July 2014 to June 2015. Though gas only accounts for 3% of South Africa’s current energy consumption, it holds great risks to industrial users’ future profitability. current Industrial users are a great contributor to employment.
Prepared by: M Ngwenya
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