Home News A hefty power hike on the cards if Eskom gets its way

A hefty power hike on the cards if Eskom gets its way

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Eskom has applied for a 19.9 percent average increase in electricity tariffs

Picture: EPA/KIM LUDBROOK

PUBLIC hearings on Eskom’s revenue application for 2018/19, which could see city residents paying almost 20 percent more for electricity next year, will be held in Kimberley on November 6.

Eskom has applied for a 19.9 percent average increase in electricity tariffs.

The National Energy Regulator of South Africa (Nersa) said in a statement issued yesterday that it would follow due regulatory processes in considering Eskom’s revenue application for 2018/19.

“The closing date for stakeholder comments on Eskom’s revenue application, which is on Nersa’s website, is October 13. Public hearings will be held from October 30 to November 17, while the energy regulator’s decision on the application will be announced on December 30.”

“Nersa would like to encourage all stakeholders and the public to participate in its decision-making processes by providing written comments and attending or making oral presentations at the public hearings.”

Written comments can be forwarded to [email protected]

Members of the public and stakeholders wishing to attend the hearing or present their views must submit their request to [email protected] by 3.30pm on October 23. Eskom’s application is available on the Nersa website at www.nersa.org.za

Eskom’s multi-year price determination (MYPD 3) cycle comes to an end on March 31 next year. Nersa approved that Eskom would submit a revenue application for a single year for the period April 1, 2018 to March 31, 2019.

Evaluate

Eskom’s acting chief financial officer, Calib Cassim, said in a statement that the power utility understood that Nersa, in accordance with its mandate, would evaluate the revenue application and allow for public consultation before making a decision on the allowed revenue.

The 19.9 percent average increase translates to a July 1, 2018 local-authority tariff increase of 27.5 percent to municipalities.

In its revenue application, Eskom said municipalities would continue to pay the 2017/18 rates for the period April 1, 2018 to June 30, 2018. This is due to the MFMA requiring municipal tariff changes to be made only from July 1 each year.