Pay more now for a brighter energy future

The author contends that while increasing Eskom's electricity tariffs may cause short-term inflation, failing to do so will lead to chronic power shortages and rolling black-outs that will be more inflationary and disproportionately harm the poor. The text suggests that the current crisis stems from unsustainably low electricity prices and a failure to invest in infrastructure. To mitigate the impact on vulnerable populations, the author proposes targeted protections such as price discrimination and free basic energy, while urging the government to invest in job-intensive renewable energy sources, potentially funded by international carbon credits.

• Maintaining current electricity tariffs is more inflationary in the long term than a tariff hike because failure to invest in infrastructure will lead to rolling black-outs, forcing companies to use expensive fuel-powered generators.
• The economic cost of unreliable electricity is higher than the cost of improving infrastructure; for example, the 2008 electricity crisis costs were estimated between R10bn and R50bn, while supply costs for the year ending 2008 were around R40bn.
• Poor populations suffer most from electricity crises because they cannot afford alternative energy sources and are more likely to experience longer black-outs than affluent areas, as evidenced by patterns in Zambia.
• The South African electricity crisis is attributed to two primary factors: the provision of electricity at unsustainably low prices and a failure to invest in infrastructure or alternative energy.
• The author recommends that any tariff increase for Eskom be conditional on detailed investment plans and that the government prioritize job-intensive renewable energy, utilizing international carbon credits to reduce budget pressure.

APA

South African Institute of International Affairs (2009). Pay more now for a brighter energy future. https://saiia.org.za/research/pay-more-now-for-a-brighter-energy-future/

Chicago

South African Institute of International Affairs. Pay more now for a brighter energy future. 2009. https://saiia.org.za/research/pay-more-now-for-a-brighter-energy-future/.

Wikipedia

{{cite report |author=South African Institute of International Affairs |title=Pay more now for a brighter energy future |date=14 July 2009 |url=https://saiia.org.za/research/pay-more-now-for-a-brighter-energy-future/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{southafricaninstituteofinternationalaffairs2009pay, author = {{South African Institute of International Affairs}}, title = {{Pay more now for a brighter energy future}}, institution = {South African Institute of International Affairs}, year = {2009}, month = jul, url = {https://saiia.org.za/research/pay-more-now-for-a-brighter-energy-future/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }