Johannesburg - Energy Regulator Nersa has approved an 18.65% electricity tariff increase for 2023/2024.
Eskom had requested a 32% increase from the regulator.
Eskom said it would respond to the regulator’s decision in a media statement on Friday.
The chairperson of the National Energy Regulator of SA, Thembani Bukula made the announcement on Thursday afternoon, saying the Eskom application was for R351 billion, but Nersa has approved allowable revenue of R318bn.
Nersa chief executive officer, advocate Nomalanga Sithole, said the decision was not taken lightly and had been checked thoroughly against legal and rational principles.
“The decision has been taken against the backdrop of difficult economic situations such as poor economic growth, declining household income, unemployment and the implementation of load shedding among other economic challenges,” Sithole said.
The announcement follows several delays by Nersa, which was expected to make its final decision in November last year on Eskom’s application to hike prices by 32%.
The submission whereby the power utility applied for a 32% tariff hike in 2023 was given to Nersa in June 2021 then updated in September 2022.
Video: Tracey Adams/African News Agency (ANA)
The power utility was hoping to revolve a total of R351bn through the tariff hike for 2023/24 and wants to recover R381bn in 2024/25.
The increase announcement also comes only a day after Eskom announced that it would be implementing Stage 6 load shedding indefinitely until further notice.
“The energy regulator has tried to strike a balance among Eskom financial sustainability issues, the impact on the South African economy and affordability of electricity services to customers,” said Bukula.
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