NERSA rewards corruption at Eskom with a 15.63% increase
14 May 2019
The City has noted the disappointing correspondence from National Energy Regulator of South Africa (NERSA), indicating that municipalities across South Africa will now face a 15.63% tariff increase from Eskom following continued tariff negotiations between Eskom and the energy regulator.
This is after NERSA had initially granted Eskom a hike of 9.41%, 8.1% and 5.2% for the next three financial years, below Eskom’s application for a 17.1 % hike for 2019/20, 15.4% for 2020/21 and 15.5% for 2021/22.
The decision means that the City of Johannesburg, like many other municipalities, will be forced to increase tariffs on electricity.
Despite the City Power’s efforts to absorb price increases arising from NERSA’s decision to grant Eskom a tariff hike, this will still result in a 13.07% increase in tariffs for the City of Johannesburg versus the 12.2% which had initially been modelled by the City, based on the initial tariff increase requested by Eskom.