Eskom's steep electricity price increases have gutted demand for its product, and promises of single-digit increases going forward come far too late to stop it from sinking.
This is according to a new demand analysis from independent energy analyst Pieter Jordaan, showing how the power utility's price increases and tariff reforms have steered customers away.
Jordaan looked at South Africa's electricity expense-to-income ratio, often referred to as energy burden to track the percentage of a household's income on electricity costs.
"A household is considered to have a high energy burden if this ratio exceeds 6 of their income, and severe if it exceeds 10 of their income," he said.
"Beyond a 6 burden, households start to limit their electricity consumption to match their income growth, or look for cheaper substitutes such as wood, paraffin, gas or solar power."
