BUSINESS NEWS - The City of Cape Town has made further strides in reducing its energy dependence on Eskom, entering into two 20-year power agreements to buy 70MW of power at a lower price than Eskom tariffs.
Mayor Geordin Hill-Lewis announced the agreements, worth an estimated R8 billion, with independent solar power producers Jempec Energy and Make a Difference.
The power they produce will be connected to the city’s grid in Atlantis and Philippi. The city will save 19-21% on power purchases compared to current Eskom rates.
“Families cannot be expected to absorb endless Eskom price increases forever, that’s why we are working to end reliance on expensive Eskom power to make electricity more affordable for Capetonians,” said Hill-Lewis.
Cape Town has made securing electricity from alternative providers a priority, previously saying that since electricity is its single largest input cost, it is essential to find ways to limit Eskom’s impact on energy prices.
The city said in a statement: “Importantly, price increases on these agreements will be linked to the Consumer Price Index (CPI), rather than unpredictable Eskom hikes, over the next 20 year[s].”
Eskom’s aggregate standard tariffs have increased at almost 15% a year since 2008, compared to average CPI inflation of about 5.8% over this period, according to economic data provider Codera Analytics.
Read more on Caxton publication, The Citizen
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