Regulator grants lower Eskom tariff increases than asked for
The troubled power utility originally applied for a tariff increase of 15% annually over the next three years
The National Energy Regulator of SA (Nersa) has awarded Eskom electricity tariff increases over the next three financial years that fall way short of what it says it needs to be financially stability. The increases for 2019/2020 will be 9.41%; 8.1% for 2020/2021; and 5.22% for 2021/2022, Nersa chair Jacob Modise announced on Thursday. This amounted to allowable revenue of R206.38bn, R221.843bn and R233.078bn over the three periods, respectively. With a previously approved increase of 4.4%, which comes into effect in April, the price increase will effectively be by 13.81% in 2019.
The troubled power utility originally applied for a tariff increase of 15% annually over the next three years, but in early February it amended the application, and asked for 17.1% hike in 2019; 15.4% in 2020; and 17.5% in 2021. Eskom is in the grips of an operational and financial crisis and has highlighted its need for higher revenues. Its electricity sales continue to decline and income from its op...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.