Eskom says tariff increase will make ‘significant’ contribution to bottom line
Eskom says it is not
blind to the financial pressures the decision to increase the electricity
tariffs will place on consumers.
The National Energy Regulator of South Africa gave a nod to an 18.65% tariff increase for the power utility on Thursday.
It further gave a go-ahead for a 12% increase the next year.
Eskom's Hasha Tlhotlhalemaje says they appreciate Nersa's decision.
"It is evident that both Eskom and Nersa aligned that every effort needs to be made to improve the energy availability factor at Eskom power stations. The shortage in capacity due to both Eskom's performance and the delays in the independent power producers' projects need to be addressed.
READ: Opposition parties furious at 19% power tariff hike
“It is noted that Nersa has reconsidered capital-related costs when compared to the previous decision. This significantly contributes to allowing for Eskom to recover costs related to debt commitments."
She says the decision will positively contribute to the utility from a financial and sustainability point of view.
"Once Nersa makes a decision on the restructuring of tariffs as submitted in August 2020 and 2022, these decisions will make sure Eskom can apply the tariff adjustments from the 1st of April 2023."
