SA Energy Regulator Confirms 9.61% Eskom Tariff Increase – Still Without Any Explanation

  • South Africa’s Energy Regulator, NERSA, confirmed today that it has approved an average tariff increase of 9.61% for Eskom’s standard tariff customers and an increase of 8.61% for municipalities. 
  • The increase for Eskom’s standard tariff customers will be effective from 1 April 2022 and for municipalities from 1 July 2022. 
  • The regulator has provided no reasons for the tariff decisions, instead it has communicated that the ‘reasons for decision’ document will be provided on their website in due course.

NERSA explains that Municipalities will realise a lower increase of 8.61% due to the fact that in the first three months (April to June) of Eskom’s financial year, they will not experience an increase, as their financial year commences on 1 July of every year. The municipalities cannot increase their tariffs in the middle of their financial year, as it would not correspond with the revenue to be achieved from licensed municipal distributors. In this regard, Eskom will over-recover revenues in the first three months (April to June) of its financial year, hence municipalities will only experience an increase of 8.61% as opposed to the 9.61% that will be seen by the rest of Eskom’s customers.

The ERTSA methodology, approved by the Energy Regulator, guides the process of allocating revenues to different customer categories, including the allocation of revenues and volumes between Eskom and municipalities.

Eskom has been left none the wiser by the regulators tariff determination and disputes the methodoly. Read more 

“Reasons for Decision document will be available on the NERSA website at www.nersa.org.za in due course,” the regulator concluded.

Author: Bryan Groenendaal

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