Electricity price to go up by 12%

2014-10-03 15:18

Consumers will be hit with a 12.69% power tariff hike next year.

The National Energy Regulator of South Africa has approved Eskom’s plans to recoup losses after it had under-recovered money during the second multiyear price determination control period between 2010 and 2013.

“Nersa announced today that it has approved the implementation plan of the regulatory clearing account balance of R7.8 million for Eskom,” the regulator said today.

“The clearing account balance will be a once-off recovery from the standard tariff customers as well as other Eskom customer categories and will only be implemented in the 2015-2016 financial year.”

This meant consumers would pay an extra 4% on top of the 8% hike approved under the third multiyear price determination control period.

“The implementation of the second multiyear price determination regulatory clearing account in 2015-2016 will result in an average tariff increase of 12.69% for standard customer tariffs from the eight percent approved in the third price determination decision of February 2013.”

Nersa approved the regulatory clearing account balance in July.

The clearing account is a regulatory mechanism that allows Eskom to adjust for over-or under-recovery of revenue, as initial price determinations are based on projections and assumptions.

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