ELECTRICITY PRICE INCREASE

On 9th of March 2020, The National Energy Regulator of South Africa (Nersa) approved Eskom’s allowable revenue from standard tariff customers to be increased by 8.76% which was expected to be implemented on 1 April 2020 for Eskom’s direct customers and 6.90% for municipalities which will be implemented on 1st July 2020. Due to the COVID-19 impact Eskom will revise the plan by September 2020.

Eskom is given a lifeline to raise about 13.2 Billion Rand from its customers through electricity hike, in the 2018-2019 Eskom recorded a shortfall of 27 Billion for the 2018 – 2019 financial year

Even though the increase will be a heavy burden to South Africans who are already cash strapped. COVID-19 will make things harder for both Eskom to raise the money since it will be a difficult hill to climb for Eskom’s customers. Business are holding on by a thread and it employees seem to be a moment away to losing their jobs.

The Utility’s finances have been ravaged by a devastating state of maladministration and rife corruption has brought this pride of our nation to its knees.

This is going to be the hardest year for business and individuals even more so for the utility having to deal with the steady increase of electricity in the coming months with the easing of the lockdown and increased power use by business.

Andre De Ruyter, Eskom CEO said “After lockdown, we will see the intial 31 days of stage 1 load-shredding that we anticipate for the next quarter”.