Nersa confirms Eskom tariff increase of 8.6% for municipalities

The National Energy Regulator of SA (Nersa) on Monday confirmed a decision reached on March 9 that allows Eskom to increase its average tariff by 9.61% for standard tariff customers and 8.61% for municipalities.

The increase for Eskom’s standard tariff customers will be effective from April and for municipalities from July, Nersa said.

The regulator explained that municipalities will realise a lower increase of 8.61% because in the first three months (April to June) of Eskom’s financial year they will not have an increase, as their financial year starts on July 1.

“The municipalities cannot increase their tariffs in the middle of their financial year, as it would not correspond with the revenue to be achieved from licensed municipal distributors,” Nersa said in a statement.

Nersa was scheduled to hold public hearings later this week on a regulatory clearing account application submitted by Eskom in which the utility is requesting to be allowed to recover about R10.7bn in revenue for the financial years 2020/2021 from customers.

erasmusd@businesslive.co.za