Electricity bills to rise

Electricity users will bear the brunt of the R32.7 billion the stateowned power utility can recover in unbudgeted costs incurred in the 2014 to 2017 financial years, the energy regulator said.

Eskom is able to raise power prices by at least 4.4%, starting April 1, to claw back the expenses through its so-called regulatory clearing account, the National Energy Regulator of South Africa said in a statement.

It first announced the amount on June 14, and on Tuesday said standard tariff customers will pay for R31.1 billion of that, with international clients and those on negotiated pricing agreements footing the bill for the rest.

The utility is facing financial strain as a result of factors including weak demand, delinquent municipalities that don’t pay their bills and widespread allegations of corruption.

The regulator gave Eskom permission to raise prices by 5.2% from April 1, far short of the almost 20% Eskom had applied for.

The power utility implemented rolling blackouts in June for the first time since 2015 after protesters blockaded roads and attacked staff when wage negotiations broke down. – Bloomberg