- Eskom’s upcoming tariff hike now moves to Parliament, after the Speaker has officially acceded to schedule a DA requested Debate of Urgent Public Importance against the tariffs.
- NERSA points out that they have received a draft revenue application from Eskom for guidance on the regulatory process and not a final one.
National Assembly speaker Thoko Didiza has confirmed that the DA requested debate will proceed with the National Assembly specifically to consider the legality of Eskom being allowed to add a “make-up tariff” next year to every user’s billing.
The debate will specifically interrogate the National Energy Regulatory Authority’s (NERSA) decision to allow Eskom to recover an extra R8 billion next year, through this “make-up tariff” which it calls a “regulatory clearing account” and which will allow Eskom to collect an extra R8 billion to make up for shortfalls in its revenue in previous years.
The DA argues that the potential impact of a 40% electricity tariff increase is horrendous for South Africans already struggling under a cost of living crisis. “If NERSA grants Eskom’s request for a further increase of 36% next year, on top of the R8 billion they want to levy as a “make-up tariff” millions of South Africans are going to be forced to choose between buying food and making electricity payments. The combined increase will force consumers who currently spend R900 per month on electricity soon to pay R1,260 per month,” said the DA.
The National Energy Regulator of South Africa (NERSA) clarifies that they have not yet received Eskom’s final application for consideration from Eskom. They have received a draft revenue application from Eskom for guidance on the regulatory process.
“Once the final application has been submitted, NERSA will consider the application, and diligently adhere to NERSA’s regulatory processes. These processes include publishing the application on the NERSA website, conducting a thorough public participation process that involves inviting stakeholder and public comments, and conducting public hearings,” said NERSA in a statement
NERSA added that they remain committed to upholding its regulatory principle of transparency, and serving the best interests of all stakeholders.
Author: Bryan Groenendaal
