Energy regulator Nersa on Thursday granted state-owned power utility Eskom an average tariff increase of 12.7%.
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Eskom’s financial viability remains at risk even though it has stabilised the electricity supply, according to the auditor-general.
Government is considering measures to offset a proposed power-price hike, including delaying plans to raise carbon taxes.
Eskom is seeking a jumbo electricity price hike, spelling good news for its creditors but pain for consumers.
Eskom has asked for permission to raise priced by 36% in its 2026 financial year, far exceeding inflation.
Nersa has distanced itself from criticism by one of its senior officials over the body’s handling of electricity tariff increases.
President Cyril Ramaphosa recently approved a new law that marks a fundamental change in the electricity supply industry.
Private producers want compensation for revenues lost when adhering to requests to limit electricity supply.
Parliament will debate a proposal by Eskom that could see electricity tariffs rise as much as 40% next year.
Reforms in South Africa’s energy sector, while proceeding glacially, are setting the scene for clean, private power generation.