Another hike in electricity prices expected: expert
An energy expert is warning residents and businesses to expect higher increases from their municipalities as far as the electricity price is concerned.
NERSA approved Eskom's request to increase its tariffs by 2.2%.
Nersa chairperson, Jacob Modise says the announcement is a relief for consumers as increases of 9.4% and 12.7% were implemented over the last two years.
This will allow the power utility to collect R205-billion in revenue in the coming financial year.
ALSO READ: Nersa grants Eskom 9.4% electricity tariff hike
Expert, Chris Yelland says consumers might still need to fork out more than expected since municipalities will also hike their Nersa approved prices.
He says the biggest cost item for a municipal electricity distributor is the energy they buy from Eskom, so their increase will be aligned with inflation.
"Municipalities will probably be putting up their price somewhat higher than 2,2% because a certain percentage of their cost is linked to the inflation rate which is around 6%. I would expect that municipalities are likely to increase their prices somewhere between 2.2% and 6% on 1 July 2017," he said.