Electricity tariff increase will go ahead despite Ramaphosa’s plea, objections

The National Energy Regulator of South Africa (Nersa) has confirmed an increase of 18.65% for Eskom’s standard tariff customers and 18.49% for municipalities.

The increase for standard tariff customers will be effective from April 1 and for municipalities from July 1.

This is despite the plea in January by President Cyril Ramaphosa for the tariff increases to be suspended while the country endures high stages of load-shedding, the recent protest marches by civic organisations and objections from opposition political parties.

Nersa said key industrial and urban customers face a 18.65% increase plus an additional 7.37c/kWh to cater for an “affordability” subsidy, which increases from 5.69c/kWh, resulting in a 29.53% increase.

Explaining the lower increase for municipalities of 18.49%, Nersa said: “In the first three months (April to June) of Eskom’s financial year, they will not experience an increase as their financial year commences on July 1 every year.

“The municipalities cannot increase their tariffs in the middle of their financial year as it would not correspond with the revenue to be achieved from licensed municipal distributors.

“Eskom will over recover revenues in the first three months (April to June) of its financial year, hence municipalities will only experience an increase of 18.49% as opposed to the 18.65% the rest of Eskom’s customers will see.”

In poorer areas, Homelight 20Amp customers will “realise a lower increase of 10%”.

Nersa said the tariffs exclude VAT, which is 15%.

“Eskom will ensure its approved Schedule of Standard Prices for 2023/24 is published on its website and communicated to all customers,” the regulator said.

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