Cape Town – South Africans are in for a possible hike in the price of electricity, as the National Energy Regulator of South Africa (Nersa) is set to rule on Eskom’s revenue application.
NERSA) announced in December that it was granted an extension to make the final decision on Eskom’s revenue application for the 2023/24 financial year.
In June 2022, Eskom reportedly asked NERSA for a 32.66% increase in electricity tariffs as means to address financial sustainability and liquidity issues.
“The National Energy Regulator of South Africa (NERSA) announced today that the High Court of South Africa (Gauteng Division) has granted the Energy Regulator an extension to make the final decision on Eskom’s revenue application for the 2023/24 financial year on or before 12 January 2023,” NERSA wrote in a statement.
“On 5 July 2022, the High Court issued an order for NERSA to make a final decision on Eskom’s revenue application for the 2023/24 financial year on or before 24 December 2022. The High Court has now extended the period to 12 January 2023.”
Media statement – NERSA granted extension to make final decision on Eskom’s revenue application for the 2023/24 financial year. pic.twitter.com/U0hwKnI71D
— NERSA_ZA (@NERSA_ZA) December 21, 2022
According to NERSA, Eskom’s revenue application amounted to R335bn for the 2023/24 financial year and R365bn for the 2024/25 financial year.
“The main drivers of Eskom’s revenue application are the regulatory asset base (RAB), primary energy, independent power producers (IPPs), operating costs and depreciation. In addition, an amount of R15bn will be added to the determined allowable revenue in compliance with the court order of 6 June 2022,” it added in a statement.
Cape Town Mayor, Geordin Hill-Lewis, has described Eskom’s proposed 32% electricity tariff increase as “unjust” and “unfair”, saying that the City won’t stand for it.
“I reiterated what I said to NERSA earlier this year, at the hearings on Eskom’s last enormous price hike — any increase in the cost of electricity substantially above inflation is unfair, unaffordable, and unjust.
“I am determined to fight for ordinary Capetonians against this outrageous proposal, a staggering number of whom are already struggling to make ends meet and buckling under the rising cost of living,” the mayor said.
According to EWN, if Eskom’s fifth revenue application is granted, the 32% tariff hike would kick in at the start of April.
The report quoted energy expert Chris Yelland as predicting tough times ahead.
“If you put up the price, it becomes less affordable. It means that more people can’t pay, it means more theft, and more arrear debt by municipalities,” the report quoted Yelland as saying.
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Compiled by Junaid Benjamin