The National Energy Regulator of South Africa (Nersa) today announced that Eskom has been granted a hike 9.4% in the electricity price that it applied for late last year for 2016/17 tariff period.
Eskom applied to have a tariff hike in the price in electricity so that it can recover R22.8 billion. Of that amount, R11 billion is due to lower than anticipated sales.
#NERSA confirms a total price increase of 9,4% on 1 April 2016 on the standard tariffs (not special or international price agreements).
— Chris Yelland (@chrisyelland) March 1, 2016
#NERSA has only allowed Eskom a 9,4% tariff increase in 2016/17 and not the 16,6% claimed by Eskom.
— Chris Yelland (@chrisyelland) March 1, 2016
#NERSA has only allowed half of what Eskom claimed for reduced sales i.e R6,2bn allows from R11,7bn claimed for reduced sales.
— Chris Yelland (@chrisyelland) March 1, 2016
But this is not the first time that Eskom has been granted a hike. Last year it was granted 8.6%, and needed the further 8.0% for its diesel-powered turbines and to battle the rising cost of coal.
Nersa added that R11.2 billion will be recovered by standard tariff customers, and international customers, while R10.2 million is to be recovered from Eskom’s local SPA customers and international customers.
Eskom was also told that it has to submit a new application within the next three months, based “on revised assumptions and forecasts that reflect recent circumstances,” EWN wrote.
The decision laid down today was supposed to have been announced last week, but it was decided to to postpone it to a later stage. “Certain information still needs to be verified,” Nersa’ Charles Hlebela told EWN at the time. “When the invitation went out today, the energy regulator was hoping that that information would have been finalised.”
