NERSA IN SURPRISE MOVE TO POSTPONE DECISION ON ESKOM’S 32% TARIFF HIKE

THE NATIONAL Energy Regulator of South Africa (Nersa) yesterday surprised industry players by its decision to postpone the announcement of its decision on Eskom’s tariff increase application and took the matter off the meeting agenda. Eskom had applied for a 32% tariff hike. Nersa was scheduled to decide on Eskom’s multiyear tariff increases for the 2023/24 and 2024/25 financial years yesterday but blamed “gremlins that slipped into its calculations” for the postponement of its judgment until the end of December. A member of Nersa’s electricity subcommittee, Nhlanhla Gumede, submitted at the beginning of the meeting that the three items regarding Eskom’s multiyear price determination revenue application be withdrawn and requested that they would be brought back for a decision before the end of December. Yesterday the DA lambasted Nersa’s decision to postpone the announcement of its decision on Eskom’s tariff increase application, saying it had “spawned credible speculation that it was a political decision taken by the regulator’s commissioners to ‘shield’ the ANC from public outrage, from what was expected to be a significant increase in the price of electricity“. In September Eskom warned Nersa to grant the full

32% tariff increase it requires in the 2023 year or face the consequences. Eskom said if the tariff was not granted the power utility would risk the further deterioration of its assets leading to load shedding. A delay in the Nersa decision comes as the power utility is awaiting the SA government to help it fund its diesel bill after overspending for the year already amid relentless load shedding. |