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
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
"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
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.