The National Energy Regulator agreed to a rate increase for the next two years
The South African National Energy Regulator (Nersa) has agreed to an 18.65% increase in electricity tariffs, effective April 1 this year.
Eskom had requested a 32% rate increase for the year 2023/24, which starts in April.
In the same rate request, the cash-strapped utility requested an additional 22.52% increase for 2024/25. Nersa has granted Eskom a rate increase of 12.74%.
The regulator said the “extremely difficult decision” sought to balance the needs of Eskom and those of consumers.
A court order required Nersa to make a final decision on the rate by December 24, but the regulator was granted an extension until Thursday, January 12 after its Electricity Subcommittee required more time to deliberate on 14 areas of concern. .
Eskom, which implemented Stage 6 continuous load shedding this week, prompted large rate increases due to rising diesel costs. The utility spent R15 billion on diesel in the 2021/22 fiscal year, some R9 billion more than Nersa would allow it to recover through electricity tariffs for that year.
Eskom recently reported a loss of R12.3 billion for the year ending March 2022.
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