2022 started off on a good note and it's sad to think that all our expectations might be caught short. The global market is currently facing alot of stress, from Covid-19 and now the war between Russia and Ukraine. One might think that these events should have little to zero effect on South Africa's economy, but the newly approved electricity tarrif will make you think deeper.
Eskom will be able to raise electricity rates by 9.6% and South Africa's national energy regulator (Nersa) confirmed during a press conference on Thursday, a day before a deadline set by energy regulators by the Pretoria High Court.
The Supreme Court ruled in favor of Eskom in his lawsuit against Nersa last December. Eskom has proposed a 20.5% average wage increase for the 2022/2023 fiscal year. At that time, Judge Jody Collapen ordered Nersa to decide on Eskom's income statement no later than February 25, 2022.
Kollapen decided that this should be resolved in accordance with the Multiannual Pricing Methodology (MYPD) published in 2016. The decision was submitted to Eskom regarding the part A tender. Eskom is also seeking an injunction to review and waive Nersa's decision to reject the application of the tariffs for 2023/2024 as well as 2025 in Part B from its implementation.
Part B of the application has not yet been decided.
Following last month's virtual provincial assembly, Nersa announced its decision following Thursday morning's meeting. Eskom has actually asked for 20.5% [targeting average rate increase] for its P&L, as has been publicly announced, and the regulator's decision is 9.61%.
This was done keeping in mind the state of our economic recovery and balancing business and consumer interests and balancing utility interests.
By the way, this is for Eskom customers. For city customers, this increase should be proportionate, so city rates may be slightly higher. The new revised rates and prices will take effect on April 1 for Eskom direct customers and on July 1 for municipalities.
What are your thoughts concerning this newly approved tarrif? Don't hesitate to make your contributions and also share this article. Thanks.
Source: The Citizen
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