How Will Eskom’s Price Hike Have A Negative Effect On The Consumer

The increase in electricity prices will l negatively affect most South African consumers. The rise might cause a boost in in the inflation rate which will also increase interest rates. The increase interest rates will affect the living conditions of consumers and cause them to spend money that they do not have. Most consumers might fail to pay for their electricity resulting in bad debts, blacklisting and power cuts. This could impact the quality of life for most consumers as they have to find alternatives to electricity. Some companies might end up retrenching to cut cost imposed by these high electricity prices. Most South African consumers will experience a decrease in the disposable income which will force them to sink further into debt and povertyIndustries such as the mining and agricultural sectors will be adversely affected as they rely heavily on electricity to survive. They might end shutting parts of their businesses to cut down cost and cover up for the expense of electricity. Prices of basic commodities will then increase and the standard of life will decrease.   

Price hikes of power will also have an impact om energy reliant industry. Industries such as the dairy production, poultry and grains use electricity for their day to day activities. Food prices will increase and unemployed people and those living in poverty will find it hard to survive. This increase will also decrease morale and change consumer behavior. People will not buy as they used to as they try to cover up for the cost of electricity. The blackouts will also affect the education sector as most children will not be able to study extra at home. Fires and danger will also be on the hike as alternatives are highly dangerous. For example, gas can be a danger to the livelihood of people.  

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