The decision by the National Electricity Regulator of SA (Nersa) to award Eskom only a 5.3% tariff increase for the 2019 financial year — together with Public Enterprises Minister Lynne Brown’s reneging on her pledge to appoint a capable board — will pile additional pressure on the utility as it grapples with imminent bankruptcy. Eskom had applied for a 19.9% increase — four times the annual inflation rate, which Statistics SA put at 4.6% in November. That increase would have further damped growth because electricity is one of the two biggest cost factors for employers. The regulator made its decision after conducting public hearings and receiving 23,000 submissions from individuals, intensive users of energy, non-governmental organisations and other stakeholders. Had Nersa granted Eskom’s request, the price of electricity would have jumped to 106.87c per kWh from April. This would have been more than double the cost of power from the 41.57c/kWh that Eskom charged in April 2010. For...
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