The national energy regulator has approved a tariff increase for the next two years
South Africa’s national energy regulator (Nersa) has approved an 18.65% increase in electricity tariffs effective April 1 of this year.
Eskom had requested a 32 percent tariff increase for the 2023/24 year beginning in April.
In the same tariff application, the ailing energy supplier applied for a further increase of 22.52% for 2024/25. Nerssa has granted Eskom a 12.74% tariff increase.
The regulator said the “extremely difficult decision” sought to strike a balance between the needs of Eskom and consumers.
A court order required Nersa to make a final decision on the tariff by December 24, but the regulator was granted an extension until Thursday January 12 after its electricity subcommittee needed more time to consider 14 problem areas .
Eskom, which implemented continuous level 6 load shedding this week, motivated large tariff hikes due to rising diesel costs. The utility spent R15 billion on diesel in fiscal 2021/22 – about R9 billion more than what Nersa would collect from electricity tariffs for that year.
Eskom recently reported a loss of R12.3 billion for the year ended March 2022.
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