Eskom to hike tariffs by more than 8 percent

JOHANNESBURG: Eskom is expected to increase electricity tariffs next year by more than the 8 percent that consumers have been expecting.

The National Energy Regulator (Nersa) said yesterday it had given Eskom permission for a further adjustment for 2015/16. The full percentage by which charges would be increased would be determined by April, Nersa spokesman Charles Hlebela said.

Nersa has also approved a regulatory clearing account balance for Eskom.

This is a mechanism that allows Eskom to adjust for over- or under-recovery of revenue, as initial price determinations are based on projections and assumptions.

Nesrsa said it had approved a regulatory clearing account balance of R7.8 billion.

Eskom had applied for a cumulative balance of R18.3bn.

“The approved regulatory clearing account balance is for the second multiyear price determination control period, 2010 to 2013, and will be implemented in the 2015/16 financial year,” Nersa said.

Itwould draft an implementation plan determining how Eskom would recover the money.

Eskom has been asking for an equity injection of at least R50bn to solve its cash flow problems.

On Tuesday, the power utility painted a gloomy picture of its books, telling MPs it faced a R225bn revenue shortfall.

This was in part a result of being granted lower-thanexpected tariff increases by Nersa, it said.