Electric Vehicles vs Reality: Eskom’s Tariff Hike and the Cost of “Green” Transport
As electric vehicles (EVs) gain popularity, many are quick to embrace them as a cleaner, more cost-effective alternative to petrol cars. Yet, when you factor in the looming Eskom tariff hikes, environmental concerns about battery production, and the overall economic challenges, the true cost-effectiveness of EVs becomes highly questionable.
Eskom’s proposed 36.15% electricity price increase for 2025 is daylight robbery, especially at a time when South Africans are already struggling with rising living costs. The increase in energy prices will make charging EVs considerably more expensive, exposing the sustainability argument for EVs as misleading.
One of the key selling points of EVs is their reduced running costs, primarily through cheaper electricity compared to petrol. However, with Eskom’s proposed tariff hike, this claim becomes less convincing. Currently, charging an EV costs R887 per month, based on Eskom’s R3.62 per kWh for Homepower 4 customers, making it R1,122 cheaper to run per month than the average petrol car. But with a 36.15% increase in electricity prices, this cost could rise to R1,210—narrowing the savings margin and making the sustainability argument for EVs less solid.
Critically, charging times for EVs are much longer than refuelling petrol cars. The time spent waiting for a charge, especially when public chargers are not widely available, adds both frustration and indirect costs, such as the need to install home charging infrastructure, which can be prohibitively expensive.
Further compounding this issue is the environmental impact of EV batteries. Lithium-ion batteries, which power most EVs, require the extraction of metals like lithium, cobalt, and nickel. Mining for these materials has devastating environmental consequences, including habitat destruction, excessive water use, and carbon emissions. Additionally, once these batteries reach the end of their lifecycle, recycling them is not only costly but also inefficient, leading to hazardous waste and pollution. These issues raise serious doubts about the idea of EVs as a sustainable alternative.
Eskom’s proposed electricity price hike is nothing short of daylight robbery. Amidst an economic crisis where inflation is already driving up the cost of living, Eskom’s relentless pursuit of higher tariffs is an insult to consumers. South Africa is grappling with high unemployment, food price inflation, and stagnating wages, yet Eskom’s solution is to force further financial burdens on the public. The timing of this increase, paired with Eskom’s poor service delivery and frequent power outages, highlights a tone-deaf approach from a company supposed to serve the public interest.
EV Costs vs Reality:
Even if EVs remain cheaper to run than petrol cars, their upfront costs remain significantly higher due to the expensive battery technology. Manufacturers often tout savings over time to justify the initial price difference, but with the electricity price hike, these savings shrink. And if petrol prices continue to increase, as projected, it only further complicates the savings calculation. While some EV owners may benefit from home solar setups, this option is far from accessible to the average South African consumer, making EV ownership an exclusive, rather than inclusive, solutionCBC.
EV owners who solely rely on public charging stations are particularly at risk of losing the cost advantage. Public chargers already charge more than home setups, with tariffs between R5.88 and R7.35 per kWh. Factoring in Eskom’s hike, the running cost of an EV could very easily surpass that of a petrol vehicle in the near future.
Environmental Costs:
EVs may seem “cleaner” because they don’t produce tailpipe emissions, but their environmental footprint is far from negligible. The production of EV batteries has a heavy carbon footprint, and the disposal of used batteries remains a significant environmental hazard. Until the industry resolves these challenges, the “green” label attached to EVs remains tenuous at best.
While EVs continue to offer certain advantages, particularly in reducing direct emissions, the reality is that they are far from the ultimate solution. Eskom’s electricity price hike will substantially reduce the cost benefits of owning an EV, and the environmental and economic costs of battery production and disposal remain unresolved. Ultimately, the notion of EVs as a sustainable, cost-effective solution is, for now, more marketing hype than reality.
