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Hefty 8% Eskom tariff hike still possible - economist

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(Gianluigi Guercia, AFP)
(Gianluigi Guercia, AFP)

Cape Town - A hefty 8% electricity tariff increase for the next fiscal year is still possible, though risks now look a little more balanced, emerging markets economist Peter Attard Montalto of Nomura said on Wednesday.

In his view, it seems highly unlikely - logistically and legally near impossible - to adjust Eskom's electricity tariffs for this current fiscal year and next year’s tariff will likely be a complex mix.

He reacted to a court order instructing energy regulator Nersa to review its decision to allow Eskom to recoup unforeseen expenses through higher electricity tariffs. This will put Eskom under even more tariff stress, according to Montalto.

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