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Nersa: 8% hike enough for Eskom

Feb 28 2013 14:24 Sapa
Electricity

(Duncan Alfreds, News24)

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Pretoria - The 8% tariff hike granted to Eskom is sufficient, said Thembani Buluka, chairperson of a Nersa electricity subcommittee on Thursday.

"The increase we have given is sufficient for Eskom," he said.

He said Eskom was allowed to appeal against Nersa's decision.

The National Energy Regulator of SA granted Eskom an 8% electricity tariff hike.

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

"The third multi-year price determination (MYPD3) will be 8% over the next five years."

This meant that the total revenue approved for the five-year period amounted to R906 553.

Eskom had applied for a 16% increase in electricity prices in each of the next five years.

This was more than double the current price, taking it from 61 cents a kilowatt hour in 2012/13, to 128 cents a kWh in 2017/18.

The current multi-price determination, MYPD 2, ends on March 31, 2013. Both MYPD1 and MYPD2 had spanned a period of three years.

Khuzwayo said a detailed analysis was done on Eskom's application.

"Eskom must ensure that alternative tariffs, other than time-of-use tariffs are available to municipalities with a predominantly residential load mix."

Khuzwayo said it was important to note that the MYPD3 application was made with the backdrop of "continuing global economic recession".

Khuzwayo said Nersa had followed due processes and held public discussions on the tariffs.

The parastatal has 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.  

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nersa  |  eskom  |  electricity tariffs
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