Nersa grants Eskom a far smaller tariff increase than in the past two years
The National Energy Regulator of SA (Nersa) has granted Eskom a 2.2% tariff increase for 2017-18 financial year — much less than in the past two financial years. This will mean Eskom gets more than R205bn more this year for its budget, which will come into effect on April 1. The amount will cover the parastatal’s costs plus a return to the value of R33.667bn, in line with the multiyear price determination. In addition to this‚ R23bn of the R205bn was earmarked for independent power producers. Nersa had previously approved an 8% average increase per year for a period of five years‚ starting from April 1 2013 to March 31 2018. "The reason for the lower percentage increase is due to the base adjustments made in the preceding years as a result of the approved regulatory clearing account balances for Eskom‚" Nersa chairperson Jacob Modise said. In the 2015-16 period‚ Nersa approved a 12.7% increase, and a 9.4% increase for the 2016-17 period, instead of 8%. TMG Digital
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