Eskom to shock the wallet

Most South Africans have given their two cents' worth about Eskom.

But soon consumers will also pay 2c more per kWh as government raises the electricity levy from 3.5c/kWh to 5.5c/kWh.

Business is being encouraged to generate more of its own electricity, with the government extending the energy-efficiency tax incentive to co-generation.

Treasury said: "Given electricity supply constraints, additional measures are needed to manage demand."

Finance Minister Nhlanhla Nene said the increased electricity levy is "temporary" and would be withdrawn once the electricity shortage is over. Two weeks ago, President Jacob Zuma said Eskom would receive an injection of more than R20-billion to resolve its financial woes.

In his medium-term budget in October, Nene said state debt would not be deepened because the government would dispose of "non-core" assets to raise the money. No such transactions have since been announced.

In conjunction with the higher levy, Nene is nearly doubling the energy-efficiency savings incentive from 45c/kWh to 95c/kWh.

Treasury is also considering giving those using solar power more tax breaks.