The National Energy Regulator of South Africa's (Nersa) approval of an 18.65% Eskom tariff increase for the 2023/2024 financial year has sparked debate and frustration.
The regulator on Thursday gave the green light to revenue of R318bn in 2023/2024 and R352bn in 2024/2025.
Eskom had applied for R351bn and R381bn respectively.
The decision was made after considering public consultation, economic challenges, declining household income, declining investments, high unemployment, low industrial production and load-shedding.
The increase will come into effect from April 1 for Eskom direct customers, with municipalities to determine the date for their customers.
The announcement was met with anger and frustration by many, who said they were already living hand-to-mouth. Others said the increase was a necessary pain to help the struggling power utility avoid total blackout.
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Image: Mark Wessels.
The National Energy Regulator of South Africa's (Nersa) approval of an 18.65% Eskom tariff increase for the 2023/2024 financial year has sparked debate and frustration.
The regulator on Thursday gave the green light to revenue of R318bn in 2023/2024 and R352bn in 2024/2025.
Eskom had applied for R351bn and R381bn respectively.
The decision was made after considering public consultation, economic challenges, declining household income, declining investments, high unemployment, low industrial production and load-shedding.
The increase will come into effect from April 1 for Eskom direct customers, with municipalities to determine the date for their customers.
The announcement was met with anger and frustration by many, who said they were already living hand-to-mouth. Others said the increase was a necessary pain to help the struggling power utility avoid total blackout.
Among those critical of the decision was trade union Solidarity, which said the regulator should be doing more to help independent power producers.
“The time Nersa spends every year to consider Eskom’s tariff increase application can be spent much better on policy reviews to allow new entrants to the power grid to supply services,” said Solidarity Research Institute economics researcher Theuns du Buisson.
“This is the only way South Africa can emerge from the energy crisis.”
The DA said the regulator failed to protect consumers.
“South Africans are already stretched to breaking point due to a high cost of living and this move by Nersa will force many to make the difficult choice of either putting food on the table or paying for non-existent power supply from Eskom,” DA MP Ghaleb Cachalia said.
“This Nersa/Eskom raid on consumers' empty pockets is unfair, unjust and cruel because it is asking consumers to pay more for electricity that they don’t have.”
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READ MORE:
Eskom’s tariff decision is ‘daylight robbery’ against consumers: DA
Nersa grants Eskom increases of 18.65% and 12.74% for next two financial years
Consider other producers, Solidarity says as it decries Eskom tariff increase
The original 15% has now gone up — here's why Eskom wants to hike prices by 32% in 2023
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