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Cape Town - Consumers will be hit with a 12.69% electricity tariff hike next year, the National Energy Regulator of SA (Nersa) announced on Friday.
Nersa approved Eskom's plans to recoup losses after it had under-recovered money during the multi-year-price-determination 2 (MYPD2) control period between 2010 and 2013.
"Nersa announced today [Friday] that it has approved the implementation plan of the Regulatory Clearing Account [RCA] balance of R7.818m for Eskom Holdings," Nersa said in a statement.
READ: Eskom: Where will help come from?
"The RCA balance will be a once-off recovery from the standard tariff customers as well as other Eskom customer categories and will only be implemented in the 2015 to 2016 financial year."
This meant consumers would pay an extra 4% on top of the 8% hike approved under the MYPD3 control period.
"The implementation of the second multi-year-price-determination RCA in 2015 to 2016 will result in an average tariff increase of 12.69% for standard customer tariffs from the 8% approved in the MYPD3 decision of February 2013."
Nersa approved the RCA balance in July.
The RCA is a regulatory mechanism that allows Eskom to adjust for over-or under-recovery of revenue, as initial price determinations are based on projections and assumptions.
The increase, which will help shore up Eskom's shaky finances, could put upward pressure on inflation and add to already escalating costs for power-intensive industries such as mining.
The government recently approved a support package for Eskom, allowing the utility to raise more debt and receive a capital injection from the state.
Eskom, which provides virtually all of South Africa's electricity, faces a liquidity crunch as costs run ahead of revenues.
It also faces a power squeeze, racing to build new plants to keep ahead of demand.
- Sapa, Reuters
