Home South African News Nersa cuts Eskom’s massive energy hike to 5.2 %

Nersa cuts Eskom’s massive energy hike to 5.2 %

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The energy regulator contrasted the Eskom's proposed 19.9% electricity hike and decided on 5.23% increase for 2018/19 financial year.

File image: IOL

CAPE TOWN – The National Energy Regulator of South Africa has announced a 5.23% electricity increase against 19.9% proposed by Eskom, it said on Friday.

Eskom applied for a total allowable revenue of R219.514 billion, which translates to a 19.9% average percentage price increase. The application is forward-looking and is not inclusive of the Regulatory Clearing Accounts (RCAs), said Nersa in a statement.

The Energy Regulator has approved Eskom’s allowable revenue of R190.348 billion for the 2018/19 financial year, which is at 5.23% increase.

“The Energy Regulator further decided that the allowed revenues must be recovered from Eskom’s standard and non-standard tariff customers (NPAsand international customers) based on the previously approved tariff principles and structures using the Eskom Retail Tariff Structural Adjustment (ERTSA) methodology as approved by NERSA,” the statement read.

Nersa says it followed due regulatory processes in considering Eskom’s revenue application for 2018/19. On 13 September 2017, Eskom’s application was published on NERSA’s website, along with an invitation to stakeholders to submit written comments.

According to Nersa, A total of 23,000 written comments were received from stakeholders, consisting of comments from private individuals, small users, intensive energy users, non-government organisations (NGOs) and environmental activists, as well as local government and other stakeholders.

The energy regulator conducted public hearings in eight provinces of South Africa from 30 October to 22 November 2017.

Nersa said it appreciates the stakeholder participation in its decision-making processes and would like to thank all stakeholders for their valuable comments and input.

– BUSINESS REPORT ONLINE