Electricity tariff hike to bite

2016-03-10 06:00

WITH issues Eskom has had over the last two financial years National Energy Regulator of South Africa (Nersa) has given Eskom the go-ahead for an increase in tariffs.
The decision was made at a meeting between Eskom and Nersa and will see a 9.4% hike effective from July.

Eskom Group Chief Executive Brian­ Molefe said the decision taken by Nersa does not address the issue of Eskom­’s financial sustainability.

“Nersa announced it will not grant Eskom the variance, which is standing at R22.8 billion as it had requested. It will only approve just above R11.2 million.

Molefe said this will have operational consequences.

“We do note that the decision has been made by Nersa and we are still going to study their reason for this and thereafter, see the implications it will have,” said Molefe.

A table of increases will be released by the minister of public enterprises in Parliament.

Eskom said it was not its intention to increase tariffs, however, it is the only way it can stabilise the situation. Eskom was asked if this means more load-shedding to be implemented, but no answer was given.

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