In the current global economic climate, companies are being forced to look at efficiencies in order to remain in business and sustain themselves longitudinally. With business competitors maximising efficiencies, thereby reducing their prices, businesses that avoid such endeavours typically lose customers, become bankrupt, and are often forced to close. This study centres around the debate as to whether the increase proposed by Eskom in 2013/2014 of 16% is warranted and aims to quantify the actual cost of the difference between the proposed 16% and the 8% typical electricity increase over the next five years on the profitability of hotels.