Nersa to allow Eskom further increase in 2018
The National Energy Regulator of SA gives Eskom a further increase in 2018, possibly pushing the rise for the year to more than double that of inflation
Electricity tariffs are to rise more than the 5% increase already set for 2018 after the National Energy Regulator of SA (Nersa) announced on Thursday that it would allow Eskom to claw back R33.2bn of its expenses from previous years. But it is not possible for now to say how exactly tariffs will be affected as Nersa has not decided how the additional increases will be phased in or over what period of time. Nersa said that it considered it would be fair for Eskom to raise an additional R32.69bn, which would be spread over the next three years. If split evenly this would be about R10.8bn a year. This equals about 6% Eskom’s R177bn revenue for 2017-18. The process of clawing back expenses from previous years is allowed so that Eskom can compensate for costs it had not anticipated at the time that it made its tariff application. However, it is scrutinised carefully by Nersa. Eskom had asked to be allowed to recoup R66.6bn but was only allowed half this amount in an indication that the ...
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