Eskom Given Green Light to Recover R6 Billion from Customers

Eskom Given Green Light to Recover R6 Billion from Customers

- South Africans have been warned that an increase in electricity tariffs is on the cards

- Energy regulator Nersa has given Eskom the green-light to recover R6 billion from consumers

- In a controversial move it seems not even solar users will be able to escape the power utility's cash grab

PAY ATTENTION: Join Briefly News' Telegram channel! Never miss important updates!

Consumers have been warned to brace themselves for a hike in electricity tariffs after energy regulator Nersa allowed Eskom to recover R6 billion.

Eskom Given Green Light to Recover R6 Billion from Customers
Eskom will now seek to retrieve a further R6 billion from consumers. Image: aldo Swiegers/Bloomberg
Source: Getty Images

This had followed the court order prompting Nersa to review its previous decisions on the matter.

The fees are in connection to a price structure application made by the power utility for the 2014 to 2017 financial years.

Nersa had previously awarded Eskom a total of R32.6 billion for recovery but the recent order has seen Nersa allowing for a further R6 billion.

Read also

South Africans Tighten Belts as Cost of Food Basket Rises to R4 000 a Month

In addition to this, Eskom wants citizens generating their own electricity to pay a charge for using the grid as a back-up.

This controversial move has seen the state-owned entity denying that it will be earning extra revenue should this occur.

A public hearing hosted by Nersa earlier this week saw Eskom presenting proposals for its tariff plan for the current financial year.

The power utility's corporate specialist on pricing, Shirley Salvoldi, told Nersa that the aim is to ensure the fees reflect divisional costs more accurately:

"Tariffs need to be updated and modernised to reflect the changing environment to protect customers and the industry."

South Africans who use solar PV or own generation, according to Eskom, should pay a capacity charge to use the grid, reports News24:

"Customers who are connected to the grid and install renewable energy should still be liable for their fixed capital costs. This also means that customers without solar PV subsidise those who have solar PV."

Read also

National Coronavirus Command Council meets amid declining cases

Earlier, reported that loadshedding has returned and it is not going anywhere anytime soon as the power utility revealed that there is a high chance that loadshedding will haunt South Africa for months to come.

South Africa was plunged into stage 2 loadshedding in January as the power utility battled to maintain a stable output as industries started up again after the Christmas holidays.

Chris Yelland, an energy analyst, revealed Eskom's power predictions which show a high chance of loadshedding.

"The @Eskom_SA three-month forecast on its website shows that the risk of loadshedding is code RED for every week for next 3 months."

Enjoyed reading our story? Download BRIEFLY's news app on Google Play now and stay up-to-date with major South African news!

Source: Briefly News

Online view pixel