ENERGY
The crisis has eased, but not the electricity bill.
Eskom tariffs have increased by more than 1 170 % since 2007, while cumulative inflation over the same period reached 174 %, according to PowerOptimal’ s analysis of published tariff data. Put differently, electricity prices rose more than six times faster than general prices over 18 years. The NERSA-approved increase of 8.76 % from April 2026, following a High Court order requiring recalculation of Eskom’ s Generation Regulatory Asset Base, sits nearly triple the current inflation rate of 3.5 %.
Businesses are no longer just asking,‘ How do I keep the lights on?’ They’ re asking,‘ How do I manage electricity as a strategic business cost?’”
“ Businesses are no longer just asking,‘ How do I keep the lights on?’” says Ginsberg.“ They’ re asking,‘ How do I manage electricity as a strategic business cost?’”
That question moves energy into finance, procurement, risk, and sustainability planning. Companies are looking to reduce exposure to utility tariffs, secure better pricing, and build more predictable annual increases into their budgets.
Electricity has moved from the facilities department to the finance conversation.
From survival to strategy
The questions are sharper now. What will electricity cost in five years? How exposed is the business to tariff risk? Can renewable energy be procured directly? Can off-site generation help companies that do not have enough roof space for solar?
Interest in wheeling, renewable procurement, power purchase agreements, and long-term price certainty reflects that shift. Solar panels remain important, but the conversation has widened beyond the roof. It now includes how businesses procure and manage electricity as a strategic input.
Energy affects margins, production planning, customer service and investment decisions. For energy-intensive businesses, it can shape competitiveness directly. For companies with public sustainability commitments, it can determine whether climate claims are backed by measurable procurement decisions or left as loose corporate language.
James Mackay, CEO of the Energy Council of South Africa, has cautioned that institutional capability across the electricity value chain will be central to reform delivering its expected outcomes, and that constraints in one part of the system can add pressure elsewhere as reforms move into implementation. For large electricity users, that is a reason to understand what is actually available now, and to choose accordingly.
Ginsberg says businesses are increasingly trying to maximise renewable energy coverage, reduce tariff exposure, and build price predictability into their planning. The aim is no longer simply to survive the next outage. It is to understand what power will cost, how it will be sourced, and how exposed the business remains.
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