15% increase in electricity prices on the cards, says Eskom
Eskom has warned consumers that they will be paying some 15% more for electricity from April next year.
This follows the power utility's legal victory over the National Energy Regulator of South Africa (Nersa).
In its ruling, the High Court ruled that Nersa was wrong to include a R69 billion equity injection from government in its calculation of Eskom's allowable revenue for 2019 to 2022.
READ: Eskom wins case to recover R69 billion
This means the cash-strapped power utility will now be able to recover the money from consumers over the next three years.
Eskom has welcomed the ruling, saying it will allow the utility to "migrate towards a situation where it could become more self-sufficient and be in a position to recover efficient costs and reduce its dependence for further equity support from the government".
Eskom's Hasha Tlhotlhalemaje says Nersa's tariff decisions is leaving them out of pocket.
"The efficient cost of electricity is not being recovered at the moment. There has been a continuous subsidy to all the consumers over many years and that still continues until we reach a level where we can be able to recover our efficient cost of electricity."
She says the poor and some sectors of the economy will be shielded from the tariff hikes.
"There will be a further 10% increase in the cost of electricity once-off. It means that the consumer will pay a little bit more for electricity but there is a plan for the poor.
"Nersa and government will continue to provide 50kw free per month and Nersa will make a final decision on how this is going to be rolled out."
Nersa believes if the ruling is left uncontested, it will disrupt the industry and further suppress economic recovery.
