Eskom’s demand for another R24 billion from consumers is outrageous and must be rejected
30 August 2023
As the DA prepares to contest NERSA’s decision to award Eskom a 31,4% tariff increase over two years, at the North Gauteng High Court on 11 September, it has since emerged that Eskom has submitted a new application to extract an additional R24 billion from overburdened consumers.
The DA finds this stealth cost recovery application by Eskom outrageous and completely tone deaf to the difficulties being faced by consumers in a high inflationary environment. With the court’s permission, we will add this latest Eskom application as part of evidence to motivate why NERSA’s January 2023 electricity tariff increase decision must be reviewed and set aside.
Eskom is reported to have submitted a regulatory clearing account application (RCA) to NERSA in April in which it is seeking to recoup R24 billion in historical cost and revenue variances for the 2021/22 financial year. If NERSA approves this application, it will likely be added on top of future electricity tariff increases.
The ramifications of NERSA’s 31,4% tariff increase is already being felt across the country as consumers take to the street to protest the increasingly unaffordable electricity bills. If NERSA goes ahead and approves this clandestine application by Eskom for an additional R24 billion, it will further increase electricity costs beyond the reach of many and price out poor households from accessing electricity.