• Voter paralysis

    With so much tilting voters against change, democratic reason is the loser, says Solly Moeng.

  • The power of perseverance

    True grit is a reliable predictor of who will achieve success in life, says Ian Mann.

  • It's the system

    The system sucks and it’s being used far too often as an excuse, says Mandi Smallhorne.

All data is delayed
See More

Eskom tariff hikes announced

Feb 28 2013 13:18
Cape Town - The National Energy Regulator of SA (Nersa) on Thursday announced that Eskom can hike its tariffs 8% over five years, half of the 16% the power utility proposed.

Eskom had asked for a 16% increase in electricity prices in each of the next five years, which would more than double the price, taking it from 61 cents a kilowatt hour in 2012/13, to 128c a kWh in 2017/18. 

"The decision of the energy regulator is based on facts," Nersa chairperson Cecilia Khuzwayo said.

She added it was important to note that Eskom's application for a 16% hike was made with the backdrop of "continuing global economic recession".

The parastatal previously said it needs the increase to cover the costs of supplying the electricity needed to power South Africa and invest in infrastructure. 

The proposed increase was met with criticism from political parties, unions, civil society, businesses, and South Africans in general.

Likely to defer interest rate hike

In a commentary, Nomura emerging markets economist Peter Attard Montalto said: "This is bad news for Eskom's balance sheet and for issuance where the difference will have to be made up, and hence why we did not pay much credence to the lower issuance forecasts yesterday (Wednesday) from state-owned enterprises in the budget.

"The government is asking Eskom to accelerate its infrastructure programme and take the bulk of that programme on its shoulders, whilst not allowing it to raise funds through user-pay-principle to fund it.

"This is good news for inflation though, and will shave some 0.16pp off our forecast from July this year which means inflation may well only be around 5.0% at year end - hence no need to hike rates this year at all, nor well into the middle of next year."


Follow Fin24 on Twitter, Facebook, Google+ and Pinterest.

nersa  |  eskom  |  electricity tariffs


Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Comments have been closed for this article.

Company Snapshot

We're talking about:


Debt is one of the biggest financial issues facing South Africans today. Find out how you can avoid and manage your debt with Fin24 and Debt Rescue.

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

Would you take out a payday loan?

Previous results · Suggest a vote