Energy regulator Nersa said on Thursday that it had granted struggling state-owned power utility Eskom an overall average tariff increase for the 2022/2023 financial year of 9.61%, versus the 20.5% increase it had applied for.
Nersa rarely allows Eskom the full amount it applies for, with disputes between the two often ending up in the courts.
Eskom argues that Nersa has not allowed it to recoup sufficient revenue via electricity tariffs over many years and says that is one of the reasons why it is dependent on government bailouts.
In response to the regulator’s decision, Eskom chief financial officer Calim Callib said: “The financial implications of this decision on Eskom’s long-term sustainability will need to be further understood. It is understood that Nersa considered the impact on consumers and the financial sustainability of Eskom as it made its decision.”
Eskom said its board “will deliberate further before deciding on how to continue to sustainably provide electricity to the extent possible in the context of this revenue decision”. — Nelson Banya and Alexander Winning, (c) 2022 Reuters, with additional reporting (c) 2022 NewsCentral Media
