Further electricity price increase expected later this year

Business

Johannesburg – According to Eskom consumers will soon notice a further increase in their electricity bills after the national energy regulator last week granted the company approval to recover a shortfall of R13.3 billion.

Eskom had initially applied in August 2019 to Nersa to claw back R27.3 billion from electricity customers through power tariffs, saying it needed to cover costs incurred for the financial year 2018/19.

Nersa said it would explain its decision to grant the current amount, once certain requirements have been finalised.

“The amount translates to an additional 3% per annum increase on electricity prices on top of the 9% per year already approved last year,” said Liz McDaid from the Organisation Undoing Tax Abuse.

Outa said the lack of any explanation was a concern to them.

“Businesses are closing, and people are losing their jobs as a result of the lockdown, yet Eskom and Nersa find reasons to push up prices without reasonable explanation to society. We find this unacceptable,” said Julius Kleynhans, strategy and business development executive at Outa.

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