Eskom to ask for further tariff increase

THE NATIONAL Energy Regulator of SA (Nersa) should decline any more tariff increases for Eskomthis year, the DA said yesterday.

Nersa confirmed Eskom was formalising an application to reopen the multiyear price determination, allowing for a further increase in electricity tariffs, DA MP David Ross said.

The application was done in consultation with the National Treasury and the SA Local Government Association.

“Nersa confirmed today that the application was due on March 15, but the Minister of Finance could grant an exemption to accommodate implementation in the current financial year,” Ross said.

Ross said he would write to Finance Minister Nhlanhla Nene to request that he decline Eskom’s application for a further tariff hike.

“On Friday last week, Eskom stated that electricity tariffs will increase 12.69 percent for direct customers and 14.25 percent for municipalities from July this year,” said Ross. “This far exceeds the 8percent annual tariff increase Nersa initially agreed to as part of the multiyear price determination to March 2018. South Africans simply cannot afford further increases to the electricity price.”

On Saturday, Eskom said new tariff hikes would take effect on April 1. “Eskom confirms that the price increase to be implemented on 1 April 2015 to Eskom direct customers is still 12.69 percent and for municipalities will be 14.25 percent from 1 July 2015, as approved by the National Energy Regulator of South Africa (Nersa) during November 2014.”

The National Treasury has promised Eskom R20 billion to help its recovery.

Yesterday, the Cape Chamber of Commerce and Industry said the tariff increases would not save Eskom unless it came “to grips with costs that appear to be rising out of control”. – Sapa