South Africans will, from April this year, pay about 18 per cent more for electricity despite the rolling power supply crisis in the country.
This is because the country’s electricity regulator, NERSA, has agreed to an 18.65 per cent increase in electricity tariffs as requested by Eskom.
According to a report filed by News24, Eskom had applied for a 32 per cent tariff increase for the 2023/24 year, which is expected to start in April.
The report said in the same tariff application, the cash-strapped power utility applied for a further 22.52 per cent increase for 2024/25.
The report said NERSA granted Eskom a 12.74 per cent tariff increase for 2024/2025.
The regulator said the “extremely difficult decision” sought to balance the needs of Eskom and consumers.
A court order required NERSA to make a final decision on the tariff by 24th December, but the regulator was granted an extension to Thursday, 12th January after its Electricity Subcommittee required more time to deliberate on 14 areas of concern.
Eskom, which implemented continuous Stage 6 load shedding this week, was motivated by large tariff hikes on the back of rising diesel costs.
The utility spent R15 billion on diesel in the 2021/22 financial year–some R9 billion more than what NERSA would allow it to recover through electricity tariffs for that year.
Eskom recently reported a loss of R12.3 billion for the year ended in March 2022.
Source: https://energynewsafrica.com