9.61% tariff increase better than 20.5% requested by Eskom

Business News

Tebogo Msimanga |

The MMC for Environment Infrastructure Services Department Michael Sun has welcomed the Eskom tariff increase of 9.61% announced on Thursday by the National Energy Regulator of South Africa(Nersa).

Eskom had applied for an annual average tariff increase of 20,5% for the financial year 1 April 2022 to 31 March 2023. Sun said “this is a mild victory for us and our residents in particular who are still struggling to make ends meet due to the economic conditions after lockdown.

“We believe that limited increase to Eskom is not just good news for City Power but also its customers as it would enable City Power to transfer the benefit to our customers”.

Sun added that by limiting the increase to 9.61% Nersa reduced Eskom’s revenue application by R26.531 billion, almost half of what it had requested. “We believe the decision is prudent and will not necessarily be to the financial detriment of Eskom.”

Meanwhile, Eskom’s Chief Financial Officer Calib Cassim said the financial implications of this decision on Eskom’s long-term sustainability will need to be further understood. “The Eskom Board will deliberate further before deciding on how to continue to sustainably provide electricity to the extent possible, in the context of this revenue decision”

Sun further said although the tariff increase is still deep for our struggling customers, it is better than the exorbitant 20.5% initially requested by Eskom.

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