New Eskom tariff plan 'needs to face class action suit'

While it's been lauded for ending load shedding, power utility Eskom is facing another challenge: explaining the reasoning for its business model in which customers buying in bulk do not get a discount, or reduced rate.

- Brian Sokutu

Customers purchasing electricity below a threshold of up to 600 kWh units are charged a tariff of R2.45/kWh, while those purchasing above 600 kWh are charged a higher tariff of R3.78/kWh.

Eskom spokesperson Daphne Mokwena said the controversy sparked by the tariffs had to do with "the incline block tariff," promising to explain the reasoning through an e-mail, which was not received.

Energy expert Tshepo Mahlaba said purchasing more electricity from Eskom meant being charged at a high rate, "which does not make economic sense - Eskom's greedy economic model."

"Globally, in economics 101, when you buy in bulk you get a discount, or a reduced rate.