Nersa puts the kibosh on Eskom’s double-digit tariff increase
The National Energy Regulator of SA has allowed Eskom a 5.23% increase in its customer tariffs up to March 31 2019, well below the 19.9% increase it wanted
The National Energy Regulator of SA (Nersa) has allowed Eskom R190.35bn in revenue for the year from April 1 2018 to March 31 2019, which translates into a 5.23% increase in the tariff it can charge to customers, Nersa said on Friday. This is well below the 19.9% increase in tariffs Eskom asked for, which aroused a storm of protest from businesses and the public. Nersa chairperson Jacob Modise said it had received 23,000 written submissions when it held public hearings around the country in October and November; there were 96 oral presentations. Some of the comments on the application included pleas for Nersa to interrogate Eskom’s fixed costs, particularly excessive staff costs, and cost over-runs on Medupi, Kusile and Ingula, and insist it rebase its sales volume forecasts to current levels. The public complained that Eskom’s provision of R17bn for capex was excessive and its maintenance costs were being increased well above inflation. Eskom spokesperson Khulu Phasiwe said Eskom w...
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