Electricity costs have more than gone up significantly. Still, as they increase, demand for Eskom's power is dwindling - not least because persistent load shedding is driving consumers to seek out alternate power sources.
On the other hand, inflation rates have remained within the desired range of 3% to 7%. The Reserve Bank stated that administered prices, such as electricity and water, are still short-term inflation risks.
However, as electricity rates have risen, demand for Eskom's power has decreased. Load shedding has also contributed to the drop in demand, with users opting for other power sources, according to NERSA.
Chris Yelland is an energy expert and managing director at EE Business Intelligence who spoke to Radio Islam International; he says that this is based on an estimation of costs and sales; from this, it allows Eskom to recover a certain amount of revenue and generate a profit.