Eskom given permission to hike electricity prices again
The increase is thankfully less than some experts had thought.
The National Energy Regulator of South Africa (NERSA) has today granted Eskom permission to increase electricity prices by 2.2%. The increase is set to come into effect from the beginning of April.
NERSA’s Jacob Modise explained that the regulator did not make any new decisions on Eskom’s revenue for the 2017/18 period. Effectively this means that Eskom will still be allowed to collect a whopping R205 billion from it’s customers. This R205 billion means that there will only be a 2.2% increase.
It’s worth not panicking at this news however, Nersa had previously granted an 8% increase per annum for a period of five years. The period started In April 2013 and is set to end next March. Therefore the news of the 2.2% increase is far less than some economists had feared in August last year. Municipalities however, are able to at their own prerogative, raise the 2.2% closer in line with inflation.
Yesterday Eskom also suspended the power interruptions to the eMalahleni and Msukaligwa municipalities, residents of the two areas have faced seven days of electricity interruptions due to the municipalities’ non-payment. Eskom had said that it “feels the pain” of the residents and has thus suspended the interruptions until the 3rd of March.
Over the last year or so Eskom seems to have been on reasonably good streak, no load shedding and now this limited price increase. Former Eskom CEO Brian Molefe was today controversially sworn in as an ANC MP.
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