The National Energy Regulator of South Africa last week approved electricity hikes of 9.41%, 8.1% and 5.2% for the next three financial years, far below Eskom’s application for double-digit tariff increases.
This is over and above the 4.41% hike, approved by Nersa in October, on Eskom’s Regulatory Clearing Account (RCA).
This means that consumers will be hit with a 13.87% average price increase which came into effect on 1 April for Eskom direct customers and a 15.63% average price increase for municipalities which will be implemented on 1 July 2019. Eskom’s initial application asked for price hikes of 17.1% for 2019/20, 15.4% for 2020/21 and 15.5% for 2021/22. The projected increases were largely opposed by business, labour and civil society via written and oral submissions.
According to Nersa, the regulator received 119 000 written comments on Eskom’s application and held public hearings in seven provinces.
Eskom will receive financial aid of R23 billion annually over the next three years from National Treasury-a drop in the ocean when compared to it’s debt of
According to analysts, this increase could see an increase in inflation, adding even more strain to the consumer.