TechCentralTechCentral
    Facebook Twitter YouTube LinkedIn
    Facebook Twitter LinkedIn YouTube
    TechCentralTechCentral
    NEWSLETTER
    • News

      Standard Bank IT spending tops R10-billion in six months

      19 August 2022

      Hungry Prosus to splurge up to R30.7-billion on iFood stake

      19 August 2022

      Koeberg unit shut down due to mechanical fault

      19 August 2022

      Blue Label expects robust full-year earnings growth

      19 August 2022

      Sarb tells banks they should work with crypto exchanges

      18 August 2022
    • World

      15 September pegged as target date for ethereum’s big ‘Merge’

      19 August 2022

      Qualcomm gets serious about servers

      19 August 2022

      China blasts US over ‘discriminatory’ Chips Act

      18 August 2022

      Tencent reports first-ever sales decline

      17 August 2022

      Chip makers are flashing a big warning for the global economy

      17 August 2022
    • In-depth

      Are you a chronic procrastinator? Read this!

      18 August 2022

      Semiconductor boom turns to bust

      16 August 2022

      African unicorn Flutterwave battles fires on multiple fronts

      11 August 2022

      The length of Earth’s days has been increasing – and no one knows why

      7 August 2022

      As Facebook fades, the Mad Men of advertising stage a comeback

      2 August 2022
    • Podcasts

      Qush on infosec: why prevention is always better than cure

      11 August 2022

      e4’s Adri Führi on encouraging more women into tech careers

      10 August 2022

      How South Africa can woo more women into tech

      4 August 2022

      Book and check-in via WhatsApp? FlySafair is on it

      28 July 2022

      Interview: Why Dell’s next-gen PowerEdge servers change the game

      28 July 2022
    • Opinion

      How AI could transform financial services in emerging markets

      19 August 2022

      No reason South Africa should have a shortage of electricity: Ramaphosa

      11 July 2022

      Ntshavheni’s bias against the private sector

      8 July 2022

      South Africa can no longer rely on Eskom alone

      4 July 2022

      Has South Africa’s advertising industry lost its way?

      21 June 2022
    • Company Hubs
      • 1-grid
      • Africa Data Centres
      • Altron Document Solutions
      • Amplitude
      • Atvance Intellect
      • Axiz
      • BOATech
      • CallMiner
      • Digital Generation
      • E4
      • ESET
      • Euphoria Telecom
      • IBM
      • Kyocera Document Solutions
      • Microsoft
      • Nutanix
      • One Trust
      • Pinnacle
      • Skybox Security
      • SkyWire
      • Tarsus on Demand
      • Videri Digital
      • Zendesk
    • Sections
      • Banking
      • Broadcasting and Media
      • Cloud computing
      • Consumer electronics
      • Cryptocurrencies
      • Education and skills
      • Energy
      • Fintech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Motoring and transport
      • Public sector
      • Science
      • Social media
      • Talent and leadership
      • Telecoms
    • Advertise
    TechCentralTechCentral
    Home»Sections»Energy»Eskom tariffs to rise sharply, but the utility wanted even more

    Eskom tariffs to rise sharply, but the utility wanted even more

    Energy By Agency Staff7 March 2019
    Facebook Twitter LinkedIn WhatsApp Telegram Email

    Energy regulator Nersa has allowed Eskom to raise prices by less than what the embattled company estimates it needs, keeping pressure on its balance sheet while also adding to inflation strains.

    Eskom, which Goldman Sachs Group calls the biggest single threat to South Africa’s economy, is surviving on government guarantees after cost overruns and delays in building new plants left it with ballooning debt. A lack of maintenance on ageing plants has led to rolling power cuts that damp economic growth and forced the state to pledge a bailout to help save the company.

    Eskom can raise prices by 9.4% from 1 April, 8.1% next year and 5.2% the year after that, Nersa chairman Jacob Modise told reporters on Thursday in Pretoria. While that’s less than the 17.1% Eskom requested for this year, it can recover some unforeseen expenses for the past four years, bringing the total price increase to 13.8%.

    The higher prices will add to inflation pressures for the coming year, and may force the central bank to raise the assumptions in its outlook

    Eskom had asked for increases of at least 15% for three years. Nersa granted it lower-than-requested tariffs after power prices climbed by more than double the inflation rate in the past decade. The utility is facing financial strain as a result of factors including weak demand, delinquent municipalities that don’t pay their bills and widespread allegations of corruption.

    National treasury in February announced a R69-billion cash injection over the next three years to help the loss-making company service its debt, which exceeds R400-billion, and free up money for operations.

    The higher prices will add to inflation pressures for the coming year, and may force the central bank to raise the assumptions in its outlook. It had assumed tariff increases of 9.7% for this calendar year, and 8.8% and 6% for the next two. Consumer inflation was 4% in January, the lowest in 10 months.

    Yields on Eskom’s dollar bonds due on January 2021 fell the most since 20 February, when the bailout — South Africa’s biggest yet — was announced. They declined 39 basis points to 6.14% by 4.39pm in Johannesburg.  — Reported by Paul Burkhardt, (c) 2019 Bloomberg LP

    Eskom Jacob Modise Nersa
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email
    Previous ArticleMTN shares rocket 18% on asset disposal plan
    Next Article MTN to launch ‘WeChat of Africa’

    Related Posts

    Standard Bank IT spending tops R10-billion in six months

    19 August 2022

    Hungry Prosus to splurge up to R30.7-billion on iFood stake

    19 August 2022

    Koeberg unit shut down due to mechanical fault

    19 August 2022
    Add A Comment

    Comments are closed.

    Promoted

    Does your contact centre have the CX factor?

    19 August 2022

    Entelek, A2pay to roll out 2 500 free Wi-Fi sites in South Africa

    18 August 2022

    Companies are drowning in data – but solutions are at hand

    18 August 2022
    Opinion

    How AI could transform financial services in emerging markets

    19 August 2022

    No reason South Africa should have a shortage of electricity: Ramaphosa

    11 July 2022

    Ntshavheni’s bias against the private sector

    8 July 2022

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    © 2009 - 2022 NewsCentral Media

    Type above and press Enter to search. Press Esc to cancel.