South Africa’s power utility company, Eskom has asked the National Energy Regulator of South Africa (NERSA) for a 36.15% electricity tariff hike for the customers it directly supplies and charges.
However, customers supplied by local power utilities could be harder hit, with Eskom requesting an increase of 43.55% for these customers.
A report by mybroadband.co.za which cited Daily Maverick mentioned that a confidential draft document, dated May 2024, reportedly revealed details about the electricity price increases the state-owned power utility wants and plans to submit to NERSA for its financial years from 2026 to 2028.
It asked NERSA for a standard tariff increase for non-municipal customers of 36.15% for the 2025/26 financial year, 11.81% for 2026/27, and 9.10% for 2027/28.
Those supplied by municipal power utilities could face increases of 43.55% in 2025/26, 3.36% in 2026/27, and 11.07% in 2027/28.
The first set of increases would be implemented on 1 July 2025, and the draft document was the first step in the application process.
The proposed electricity price hikes must still undergo an extensive public comment and hearing process.
Eskom hopes that through the price increases, it will generate revenue of R446 billion, R495 billion, and R537 billion in 2026, 2027, and 2028, respectively.
The state-owned power utility said the delayed implementation of South Africa’s renewable energy programme means it is under pressure to increase its generation capacity.
It noted that between 2019 and 2023, over 8,000MW of capacity that was primarily meant to come from solar and wind generation was not available as intended in the Integrated Resource Plan of 2019.
As a result, its coal-fired stations have to fill in the generation gap.
Eskom’s electricity tariff increase of 12.54% for its direct customers kicked in on 1 April 2024, while the tariffs it charges for electricity sold to local authorities like municipalities increased by 12.72% from the same date.
Source: https://energynewsafrica.com