Regulator delays decision on Eskom tariff increase
Second postponement is required to ‘fill in all the gaps that are missing’, Nersa member says
14 December 2022 - 14:37
by Denene Erasmus
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Electricity transmission pylons are shown in the Dunoon informal settlement in Cape Town. Picture: BLOOMBERG/DWAYNE SENIOR
SA’s energy regulator has for a second time delayed its decision on Eskom’s application for higher tariffs as consumers nationwide contend with the worst power cuts ever.
The National Energy Regulator of SA’s (Nersa’s) electricity subcommittee said on Wednesday they still need more time to consider Eskom’s revenue application for 2023 and 2024.
Nhlanhla Gumede, a full-time regulator member at Nersa said during a meeting of the electricity sub-committee on Wednesday that the additional time was needed to “fill in all the gaps that are missing”.
After revising its tariff application for 2023/2024 and 2024/2025, which was part of Eskom’s fifth multiyear price determination (MYPD5) — originally submitted in June 2021 — the state-owned power utility is seeking annual standard tariff increases of about 32% in 2023 and 9% in 2024.
Nersa approved a 9.6% increase in the standard electricity tariff for 2022/2023 (the first year of the MYPD5), which came into effect in April. That was about half of what Eskom requested.
The allowable revenue Eskom hopes to recover in the two financial years in question amounted to R335bn for 2023/2024, and R365bn for 2024/2025.
Electricity prices for consumers have risen more than 500% over the past 16 years even as the reliability of supply has plummeted, with 2022 the worst year of load-shedding on record.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Regulator delays decision on Eskom tariff increase
Second postponement is required to ‘fill in all the gaps that are missing’, Nersa member says
SA’s energy regulator has for a second time delayed its decision on Eskom’s application for higher tariffs as consumers nationwide contend with the worst power cuts ever.
The National Energy Regulator of SA’s (Nersa’s) electricity subcommittee said on Wednesday they still need more time to consider Eskom’s revenue application for 2023 and 2024.
Nhlanhla Gumede, a full-time regulator member at Nersa said during a meeting of the electricity sub-committee on Wednesday that the additional time was needed to “fill in all the gaps that are missing”.
After revising its tariff application for 2023/2024 and 2024/2025, which was part of Eskom’s fifth multiyear price determination (MYPD5) — originally submitted in June 2021 — the state-owned power utility is seeking annual standard tariff increases of about 32% in 2023 and 9% in 2024.
Nersa approved a 9.6% increase in the standard electricity tariff for 2022/2023 (the first year of the MYPD5), which came into effect in April. That was about half of what Eskom requested.
The allowable revenue Eskom hopes to recover in the two financial years in question amounted to R335bn for 2023/2024, and R365bn for 2024/2025.
Electricity prices for consumers have risen more than 500% over the past 16 years even as the reliability of supply has plummeted, with 2022 the worst year of load-shedding on record.
erasmusd@businesslive.co.za
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