Weslander

Load shedding renders lower price hike hollow

accreditation
0:00
play article
Subscribers can listen to this article
Despite ongoing load shedding South Africans will soon be paying more for electricity.
Despite ongoing load shedding South Africans will soon be paying more for electricity.

The National Energy Regulator of South Africa (Nersa) may well have approved a lower, adjusted annual price hike for electricity, but as load shedding continues it is of little comfort to the public.In a statement released in Thursday (12 January) the regulator approved a 18,65% price increase, which translates to a traffic of 146,48c/kWh.

According to Nersa, the increase was adjusted after “conducting due regulatory process.”Eskom applied for a 32% price hike, but after public consultation Nersa received around 2 000 written comments on stakeholders’ concern on the affordability of the proposed increase. “Accordingly, the Energy Regulator’s decision provides a balance between the sustainability of Eskom and the economic well-being of the consumers and the economy,” it said in its statement.

The power utility said on Friday (13 January) its highest priority is to minimising of load shedding, which is current indefinitely implemented at stage 6.

“Eskom appreciates the tough decision made by the National Energy Regulator of South Africa (Nersa) for the FY2024 and FY2025 revenue determinations and recognises the pressures this determination will place on consumers. “Once Nersa makes a decision on the restructuring of tariffs (as submitted during August 2020 and 2022), these decisions will ensure Eskom can apply the tariff adjustments to its customers from 01 April 2023,” the power utility explained in a statement.

In July 2022 the High Court ordered Nersa to undertake the necessary regulatory steps to assess, consult and make a determination on Eskom’s FY2024 and FY2025 Multi-Year Price Determination (MYPD) Application. Nersa has approved revenue of R334bn for the 2024-’25 year.“Eskom notes the decision by Nersa,” said Calib Cassim, Eskom’s Chief Financial Officer.

“This decision will positively contribute from a financial and sustainability point of view.“The revenue determination of R319 billion and R352 billion for the financial years 2024-’25 will allow a further migration towards a price level that reflects the efficient cost of producing electricity.”

We live in a world where facts and fiction get blurred
In times of uncertainty you need journalism you can trust. For 14 free days, you can have access to a world of in-depth analyses, investigative journalism, top opinions and a range of features. Journalism strengthens democracy. Invest in the future today. Thereafter you will be billed R75 per month. You can cancel anytime and if you cancel within 14 days you won't be billed. 
Subscribe to News24
Voting Booth
What are your thoughts on the possibility of having permanent Stage 2 or 3 load shedding?
Please select an option Oops! Something went wrong, please try again later.
Results
I'll take that over constant schedule changes
13% - 539 votes
Why are we normalising Eskom’s mess?
72% - 2979 votes
I've already found alternative ways of powering my home/business
15% - 601 votes
Vote
Rand - Dollar
17.18
+0.1%
Rand - Pound
21.26
+0.4%
Rand - Euro
18.67
+0.3%
Rand - Aus dollar
12.21
+0.2%
Rand - Yen
0.13
-0.3%
Platinum
1,011.25
+0.7%
Palladium
1,621.90
-2.7%
Gold
1,931.34
+0.1%
Silver
23.58
-1.4%
Brent Crude
87.47
+1.5%
Top 40
74,766
+0.4%
All Share
80,791
+0.4%
Resource 10
77,871
-0.4%
Industrial 25
103,872
+0.7%
Financial 15
16,281
+0.6%
All JSE data delayed by at least 15 minutes Iress logo
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE