Eskom's proposed 16% Electricity tariff increase bad for the property industry

Posted On Thursday, 21 January 2016 17:00 Published by
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The commercial property industry is hugely concerned with Eskom's proposed 16% electricity tariff increase which it believes will have a negative effect on the industry.

Neil_Gopal_SAPOA_CEO

"The huge increase will definitely have an effect on the property industry in an economy which is slowing at a rapid pace, where vacancy rates are in the increase, and where many retailers are closing down due to high rental costs." says SAPOA CEO Neil Gopal. 

The South African Property Owners Association (SAPOA), which represents retail, office and industrial property in South Africa - said the situation is dire and that water and sanitation pricing will also increase for the foreseeable future.

The NRS049 regulation titled “Advanced metering infrastructure for residential and commercial customers” is in the final stages of revision. When finalised , it will solidify the framework that will accelerate Smart Meter rollouts in Eskom and Municipalities. 

This will, in turn, improve their grid control and revenue management, at a cost to the consumer and property sector in general.  We are in for a bumpy ride and a significant game change in the property sector in so far as utilities are concerned.

 SAPOA encourages its members to accelerate electricity efficiency and renewable energy initiatives.  This would be a measure to mitigate the risk in escalating cost of occupation and inherently property vacancy.

"We aim to create sustainable property environments that consume less energy, and therefore not only reduce the carbon emissions, but also reduce the expense associated with high energy consumption,”, says the SAPOA Sustainability Committee.

Last modified on Friday, 22 January 2016 14:42

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