A Live Example Of A Death Spiral
The Sales Numbers Are Declining And Will Start To Speed Up The More They Raise Their Prices.
The failed State Owned Electricity supplier according to reports is seeing it's electricity sales decrease by 3% year on year. The selling of less electricity is directly linked to more and more customers looking for alternative electricity sources like renewable energy. This has been a gradual process where the good paying customers have had enough including many businesses and not just households.
The problem I have mentioned before previously is that the business model Eskom are using is making this problem even worse and is just plain stupid. Above is a prime example of what many businesses are facing and the only is to upgrade and leave the grid entirely no matter the cost.
Eskom and their power utility suppliers around the country have stated that by 1st March 2026 all of these solar installations have to be registered paying various fees. Mine is R30K and this business mentioned above is R42K.
The National Energy Regulator (NERSA) approved a ToU tariff also known as time of use which would see any solar users being charged double the normal rate. Then knowing this why would you even consider staying on the grid as no matter how much you reduce your electricity usage you are still paying a penalty.
As frustrating as this type of mentality is as they believe the paying customers need to pay for or subsidize those that do not pay and is a communist way of thinking. This is across the board thinking by charging more for a small group to pay for the bigger group and is basically unfair. The frustration of this type of thinking actually forces you to think differently and why these electricity penalties are not going to keep the solar customers and do the exact opposite as they have no choice left, but to go bigger and leave the grid entirely. This is pure common sense and the part the people of Eskom have missed.
The R30K license or registering fee is never going to happen and everyone else will be thinking the exact same thing as that fee can be invested by going bigger and bigger and becoming self reliant away from the grid. Who is going to subsides the grid when everyone who was paying has left as this will not just be the wealthy as prices will rise forcing even the middle class to leave.
I was reading the data and AI centers that have been growing in SA (13th in the world) have had to find alternative energy sources. The computers require huge amounts of energy not only for running, but also colling. Many have turned to their own solar farms which they have invested into out of need, Their electricity needs are the equivalent of more than 2 million homes and the likes of AWS have a 10 MW solar plant that they use as back up plus the grid.
The problem with this new law coming into effect next year in March is that the data centers are also being targeted directly and they will have no choice, but to leave the grid entirely as well. This is huge revenue they are chasing away and they think they are being smart, but cannot see the disaster that is coming.
The other worry and I am sure it is justified is the rates will just rise and most likely double to counter the losses so it is a constant negative spiral that results in less investment and self sufficient hoses and businesses relying on no services. Wait until we see private dustbin trucks offering a cheaper rate because that will happen if they do not change their charging policies. We already have private fire engines and private security so there are other services coming at lower rates.
Posted Using INLEO