Eskom granted 19% tariff hike amid load shedding crisis
The National Energy Regulator of South Africa (Nersa) on Thursday announced its decision to grant Eskom a tariff increase of 18.65% from April 1.
The increase will be effective for the 2023/24 financial year, while another 12.74% increase will apply for the 2024/25 financial year.
The power utility had asked the regulator for a 32% hike.
The announcement comes as the county battles continuous power cuts, moving through varying load shedding stages.
Nersa chair Thembani Bukula said the regulator approved allowable revenue of R318 billion after considering adjustments for inefficiencies and prudence reviews.
“The Nersa-approved revenue is R334bn for the 2024/25 financial year, which translates to a tariff of 195.95c/kWh, resulting in a 12.74% increase based on the tariff of 173.80c/kWh NERSA approved tariff for the 2023/24 financial year.”
Bukula said the energy regulator tried to balance Eskom’s needs with those of hard-pressed South Africans.
"The energy regulator also conducted public hearings to solicit comments from interested and affected stakeholders. As a result, Nersa received approximately 2000 written comments from stakeholders, who raised concerns about affordability.
“It is important to note that Eskom's revenue application for the 2023/24 and 2024/25 financial years was considered against various challenges that are affecting the South African economy. Accordingly, the Energy Regulator’s decision provides a balance between the sustainability of Eskom and the economic well-being of the consumers and the economy.”
