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South Africans brace yourselves as Eskom implements tariff increase!

By: Thomas Lethoba

The embattled power utility has announced that its loyal customers have to brace themselves accordingly for another hike in electricity tariffs after their proposal to increase tariffs has successfully been approved by Nersa (National Energy Regulator of South Africa).

In a released statement on Saturday, the power distributor said, although the low electricity capacity during the lockdown has significantly gave it a head to maintain its power stations, the lower usage has negative financial implications.

“On 9 March 2020, the National Energy Regulator of South Africa (Nersa) approved Eskom’s allowable revenue from standard tariff customers to be 8.76% which will be implemented this month for Eskom direct customers and 6.90% for municipalities which will be implemented on 1 July 2020," a statement read. 

In February acting Eskom CEO Andre de Ruyter said the issue of the power utility’s debt and financial woes had to be addressed, either through a tariff increase or an equity injection.

De Ruyter cited major projects taken on at the Medupi, Kusile and Ingula power plants as being among the chief drivers of Eskom’s debt.

As a result, Eskom has a much-needed break to carry out much long overdue maintenance on its power stations, and fulfil its mandate to keep lights on for their consumers.

Content created and supplied by: ThomasLethoba (via Opera News )

De Ruyter Eskom National Energy Regulator of South Africa Nersa Thomas Lethoba

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