Eskom's 25% tariff hike declined

By Drum Digital
29 June 2015

Nersa announced that it has denied Eskom's application for a 25 percent tariff hike.

The National Energy Regulator of South Africa (Nersa) announced it has denied Eskom's application for a 25 percent tariff hike, reports EWN.

It announced the decision following a week of public hearing.

Nersa chairman Jacob Modise said, “The application did not provide the mechanism on how the proposed increase, if granted, will be implemented in the current financial year in a manner that is consistent with the requirement of the municipal financial act 2003.”

This means, while Eskom will be given the already approved 12 percent, it will not be granted a further hike, said EWN.

Eskom argued it needed more funds to buy diesel in order to minimise load shedding and prevent further damage to the economy.

Last week, organisations and businesses made their presentations to Nersa about Eskom’s proposed 25 percent tariff hike.

On Wednesday Eskom’s Acting CEO Brian Molefe vowed to do whatever it takes not to harm South Africa's economy, whether or not they receive a tariff increase.

Molefe was giving his closing remarks at the end of two days of public hearings into Eskom's 25 percent electricity price hike.

He argued they won't be pursuing a 2,5 percent environmental levy so what they're looking for is about 9,5 percent for the 2015/16 financial year to keep the lights on.

Source: EWN

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