Thursday, September 26, 2024

Public encouraged to comment on Eskom's eye-watering 36% tariff hike request

The National Energy Regulator of South Africa (NERSA) has officially published Eskom's massive tariff hike request, with the controversial proposal ready for public consultation.

Eskom is asking for a 36% electricity price increase starting in 2025. The power utility's multi-year request includes applications to hike up tariffs by almost 12% in 2027 and 9% in the 2028 financial year. 

PICTURE: Eskom


The power producer is seeking a total revenue increase of R446 billion for 2026.

Eskom believes that this application allows for an improvement in the financial sustainability of Eskom through the migration to cost-reflective prices and the successful operation of Generation, Transmission and Distribution in Eskom.

“Further migration towards cost reflectivity to cover the full cost of capital would be considered in subsequent applications. This would minimise the impact on the taxpayers,’’ it said in a statement.

In accordance with its revenue decision, Eskom said Nersa will then make tariff decisions for implementation from 1 April 2025.  As per Eskom, it can only implement tariff decisions made by Nersa.

Nersa says public submissions on the proposed increases are open until 1 November. Public hearings have then been scheduled to take place from 18 November until 4 December.

The Democratic Alliance (DA) meanwhile has opposed Eskom's application and recently called for its rejection.

 

Done by: Mitchum George

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