The National energy regulator of South Africa (Nersa) approved Eskom’s application for a tariff hike of 9, 4 per cent for the 2016/17 financial year.
Last year Eskom asked Nersa to increase electricity tariffs by a whopping 17 per cent from April this year. Nersa held public hearings on Eskom’s application to recoup R22, 8 billion through a regulatory clearing account thought the country.
Nersa determined that electricity tariffs would increase by 8 per cent per year from April 1 2013 to March 31 2018. On April 1, 2015 however, tariffs increased by 12.69 per cent instead of 8 per cent, after an adjustment was made for under-recovery in the previous tariff period.
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The Group Chief Executive of Eskom Mr Brian Molefe says, “Eskom has noted Nersa’s decision, which yet again doesn’t address the question of Eskom’s continued financial sustainability. In addition, it will have operational consequences.”
“We note Nersa’s decision and will study the details contained in the reason for decision document once received before commenting on its implication,” says Molefe.
“We understand the implementation of the regulatory rules in Nersa’s RCA balance decision. The decision on the revenue variance and certain primary energy costs including independent power producers is supported,” says Molefe.
