Energy

Eskom Tariffs Set to Go Up, Power Utility Wants 32% Hike to See Return on Assets

Wednesday, December 14, 2022 at 5:56 PM by Lerato Mutsila

While South Africans face ongoing loadshedding Eskom has requested that the price of electricity go up by 32%
The National Energy Regulator of South Africa claimed that Eskom wants the increase so that it can get a return on its asset
Though consumers are factored in when deciding on price hikes Nersa says it also has to look at the cost of producing electricity when deliberating on tariff hikes

PAY ATTENTION: Read the hottest World Cup news, gossip, analytics and predictions

JOHANNESBURG - Eskom has proposed that the price of electricity should go up by 32% in 2023. The National Energy Regulator of South Africa (Nersa) revealed that the power utility requested a steep hike so that it can get a return on assets.

South African power utility Eskom — Eskom wants South Africans to pay 32% more on electricity in 2023. Image: Waldo Swiegers
Source: Getty Images

Speaking on 702, general manager of regulation Hasha Tlhotlhalemaje said that Eskom had originally requested a 15% hike but increased it to 32% because of under practice.

Read also

Video of rich people chatting in expensive cars gives Mzansi chest pains: "Levels to this life thing"

The general manager added that South African consumers are considered when the power utility applies for price hikes but when push comes to shove cost must be considered by Nersa.

Nersa will deliver its decision on Eskom's hike request on Wednesday, 14 December.

PAY ATTENTION: Follow Briefly News on Twitter and never miss the hottest topics! Find us at @brieflyza!

While South Africans face the prospect of having to pay more for electricity, Eskom has predicted that citizens will have to contend with loadshedding until 2027, TimesLIVE reported.

The prediction is revealed in the power utilities medium-term adequacy report which asses the electricity supply based on trends in demand and generation capacity over a five-year period.

The report claimed that 2022 has been the worst year regarding loadshedding and the situation is likely to worsen as the power utility fleets age, power stations close and demand for electricity rises.

South Africans react to Eskom's request for a 32% tariff hike

Citizens aren't too happy with the prospect of having to pay more for electricity.

Below are some reactions

@chadwowski commented:

We seem to be paying more and more for less and less. That’s a no from SA.

@master_otu added:

"Sure no problem, on condition that 32% gets taken off all @Eskom_SA employees' salary every month we get hit with loadsheding."

@Theadjudicator8 quipped:

"32% is too little, why not 50%?"

@FreeSpi99240622 claimed:

"Soon we'll be paying for NO ELECTRICITY."

@DestinyRebuild demanded:

"NO. Time to clean house!"

@Change49613693 declared:

"We are paying for rolling blackouts??? It is time that we go to the streets and protest!"

Eskom CEO Andre de Ruyter succumbs to loadshedding pressures and resigns, South Africans have mixed reactions

In a related story, Briefly News reported Eskom CEO Andre de Ruyter has tendered his resignation at the state-owned power utility.