More tariff hikes likely as Eskom seeks claw back
Updated | By Steve Bhengu
Consumers could be burdened with another price hike should Nersa approve Eskom's application for a R22.8-billion claw back.
The amount is for the 2013/14 financial period and is said to have been used to purchase diesel in order to avoid load shedding during the winter months.
Each time the electricity producer spends over its budget the exceeded amount is clawed back from Nersa in the form of increased tariffs.
The parastatal's Khulu Phasiwe says whether or not their application will be approved is at the discretion of the energy regulator.
"If we do get a claw back, then it means that in addition to the 8% guarantee that we already have in terms of a tariff increase for next year, then the regulator might give us an extra percentage or whatever they will determine in the next financial year.
"What that means is that there's likely to be an increase of more than 8% in electricity tariffs from next year," he said.
(File photo)
Show's Stories
-
From Clairwood to the world: Judge Navi Pillay’s extraordinary journey
Born in Durban, Judge Navi Pillay broke barriers in South Africa’s legal s…
Stacey & J Sbu an hour ago -
Darren Maule wins live announcer of the Year at South African Voiceover Awards
East Coast Radio’s Darren Maule has added another accolade to his name, ta…
East Coast Breakfast 23 hours ago