Electricity to go up 2.2%

On the back of budget 2017 forcing taxpayers to dig deeper into their pockets, the National Energy Regulator of SA (Nersa) yesterday confirmed a 2.2% increase in the price of Eskom electricity.

The Nelson Mandela Bay Business Chamber welcomed the decision, which follows a North Gauteng High Court ruling against Nersa’s 2016 decision relating to the multiyear price determination.

The Nelson Mandela Bay Business Chamber, which joined the challenge spearheaded by the High Energy User Group, said: “The Nelson Mandela Bay Business Chamber has, for years, been at the forefront of this fight against unrealistic electricity price increases through the consistent lobbying efforts by our electricity and energy task team.”

The North Gauteng High Court ruling found the most recent regulatory clearing account (RCA) adjustment to Eskom’s tariffs to be “irrational, unfair and unlawful”.

The combined saving for the country resulting from the ruling has been conservatively calculated to be between R50 billion to R60 billion, said Nelson Mandela Bay Business Chamber deputy president MC Botha.

“This new tariff structure will benefit the country at large because it will not only result in reduced electricity prices for businesses and homes, but it will also secure thousands of jobs by making industry more competitive and enabling an investor-friendly environment for the economy to grow.

“Holding government institutions accountable has resulted in a massive win for not only industry, but ordinary electricity users. We were the only business organisation in the country to take a tough and effective stand against this,” Botha said.

High Energy User Group spokesperson David Mertens said this victory demonstrated that business and consumers should exercise their rights when they need protection. “Recent revelations in the Denton report about Eskom’s mismanagement confirm that our challenge was the right decision.

“We are relieved that Nersa made the appropriate call and we see this decision as a new beginning for the energy regulator,” Mertens said.

However, Nersa said if Eskom foresaw any risks to its cash flow and financial sustainability, it could still apply to Nersa for relief.

“The only new matter considered by the energy regulator today was the potential financial harm that may be occasioned by Nersa not being able to process new RCA applications as a result of the interventions of the North Gauteng High Court,” Nersa chairperson Jacob Modise said yesterday. “The approved revenues of R205-R214 million will be able to cover all of Eskom’s allowed costs.”