Nersa Grants Eskom A 9.5% Electricity Tariff Increase From 1 April

• South Africans will have to start paying for electricity after the National Energy Regulator of South Africa granted Eskom the opportunity to hike tariffs
• From 1 April, Eskom customers will pay 9.61 per cent more for electricity which is a little less than what Eskom had initially requested
• South Africans have shared their frustration with electricity becoming more expensive with some people highlighting the increase is above the inflation rate

JOHANNESBURG - The National Energy Regulator of South Africa (Nersa) stated on Thursday, 24 February that Eskom's rate rise for 2022/23 will be 9.61 per cent.

The tariff rise for 2022/23 is 3.49 per cent, plus legacy decisions from prior years, bringing the total to 9.61 per cent. Eskom had initially requested a 20.5 % electricity tariff increase, which included the prior revenue allowance.

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Eskom had argued that a 20.5% increase was necessary because of factors that are beyond the stated-owned power utility namely, the requirement for Eskom to buy energy from independent power producers(IPPs) and carbon tax, according to Fin24.

The new tariff will come into place from 1 April for Eskom customers and Municipal customers will see the increase from 1 July.

Eskom responds to the 9.61% tariff increase

Following Nersa's announcement, Eskom issued a statement saying that it appreciates how quickly Nersa made a decision regarding the tariff increase. Eskom says the timeous determination will give the power utility the opportunity to apply the adjusted electricity price to customers.

Eskom says it understands that Nersa undertook to increase the tariffs by only 9.61% because it took the consumers and the power utility's sustainability into consideration.

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However, chief financial officer, Calib Cassim says Eskom will still need to review Nersa's determination and also assess the long-term sustainability of the power utility.

Here's the full statement:

South Africans weigh in on the electricity tariff increase

Taking to social media, South Africans are frustrated with how expensive electricity will become. Some say the increase in tariffs is selfish.

Here are some comments:

@iam_ndani said:

"Utter rubbish, we are on our own!!!!"

@thedungelos said:

"This is selfishness, we are in a pandemic and people lost jobs and some experienced salary cuts, how are we supposed to afford electricity?"

@GinaMeintjes said:

"Well, they have a moerse debt to pay and the money can only come from the hardworking South Africans while the Guptas are living it up on our money in Dubai ."

@KSundawana said:

"We will manage we've managed before so what's the use, even if we cry our tears fall on deaf ears."

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@FaraNani04 said:

"Living in this country is becoming too expensive, hiking electricity then after that yall will load shed us yoh no man."

@TraderNick34 said:

"9.61% but then when you get your salary increase they will give you inflation-linked at 4.4%."

@thandomasanabo said:

"Hello no! They need to show us who agreed to this during public opinion and why the hell would they agree to this?"

@HLABARINTO said:

"Just give them 200% increase to avoid this unnecessary yearly "breaking news". Oh I forgot they will still approach Nersa the following year asking for an increase on top of the 200% after spending most of their cash on bonuses and salary increases or paying ghost employees."

@Lekwadud said:

"So, this is Eskom's plan to stop #Loadshedding by pricing ordinary citizens out of access to electricity?? What they fail to understand is that South Africans will keep their lights on, Legally or otherwise."

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South Africans pay a lot more for electricity than neighbouring countries

Briefly News previously reported that South Africa's state-owned power utility Eskom, has had issues with power generation for over a decade which led to the implementation of loadshedding to lessen the strain on the grid.

In addition to rolling blackouts, South Africans have had to come to terms with electricity getting more and more expensive throughout the years. Eskom now wants to increase electricity tariffs by 20.5% in April this year.

Eskom has proposed the new tariff increase to the National Energy Regulator of SA (Nersa) and stated that the tariff increase is influenced by two factors that are beyond the control of the power utility.

Source: Briefly News