Consumers facing higher electricity prices after Nersa ‘error’
The National Energy Regulator of South Africa (Nersa) says it identified errors in its earlier price determination.
The revised tariff hike follows an out-of-court settlement with the power utility.
It’s steeper than the initially announced five percent and six percent, respectively.
It allows Eskom to now recover an additional R54 billion over the next two financial years.
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While there was no public consultation on the revised tariff hike due to the legal process, Nersa says the phased rise is meant to balance Eskom’s revenue needs with consumer protection.
The Democratic Alliance has condemned the decision, saying the consumer will be paying for Nersa’s mistakes.
The party's spokesperson on energy Kevin Mileham has called on Parliament’s Portfolio Committee on Energy and Electricity to investigate how the error happened and to prevent similar mistakes.
"Businesses, municipalities, and households will once again be forced to pay for the incompetence of the regulator and the inefficiency of Eskom.
"It is unacceptable that a technical error in the calculation of depreciation and the Regulatory Asset Base could result in such a massive financial burden being shifted onto consumers. This points to systemic failures within Nersa’s processes and calls into question the credibility of its regulatory oversight. South Africans deserve answers."
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