South Africans Brace for Another Steep Eskom Tariff Hike in 2024

• Energy expert Tshepo Kgadima warns that the anticipated Eskom tariff increase will be catastrophic for the economy, underscoring the significant impact on inflation rates
• Despite earlier tariff increases, Kgadima questions their beneficial impact on Eskom's financial well-being
• A 12.74% tariff increase is set to take effect in April

South Africans are cautioned to prepare for another substantial Eskom tariff increase, expected to double the inflation rate.

Energy expert Tshepo Kgadima expresses concern, stating that it will be catastrophic for the economy, emphasising the impact of energy costs on inflation rates.

Despite previous tariff hikes, Kgadima doubts its positive effect on Eskom's financial health.

Nersa approved an 18.65% increase during extensive load shedding in the previous year, with an additional 12% hike for the 2024/2025 financial year."

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Kgadima contends that consumers are currently paying excessive charges.

Eskom tariff hike set to come into effect in April

Despite enduring the most severe year of load shedding in 2023 and the anticipated continuation of power outages in 2024, South Africans must also grapple with an unavoidable Eskom tariff hike.

According to Business Tech, The South African High Court dismissed requests for a judicial review of the National Energy Regulator of South Africa's (Nersa) decision on Eskom's fifth Multi-Year Price Determination (MYPD5) application for the fiscal years 2023/24 and 2024/25.

Former Eskom CEO Andre de Ruyter emphasised that although the R254 billion debt-relief package is crucial for Eskom's recovery, it is insufficient on its own. De Ruyter pointed out that he would have added another condition to the debt relief package: requiring Eskom to secure cost-reflective tariffs from Nersa. He highlighted that Nersa has frequently granted Eskom less than the utility requested.

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A 12.74% increase is scheduled to be implemented in April.

Pretoria high court: Minister ordered to exempt public facilities from load shedding

In other news, Briefly News reported the call by the High Court comes after they initiated stage 6 recently. South Africans shared their thoughts about the ruling by the Gauteng judiciary. The pressure was on after the Pretoria High Court ruled that load-shedding violated South African people's rights.

The court ordered the minister to ensure electricity supply for public facilities such as hospitals and schools by January 2024.

Source: Briefly News