Cape Town – Amidst higher stages of load shedding, South Africans have been informed that they will have to cough up more money for electricity after the National Energy Regulator (NERSA) gave Eskom the green light to increase tariffs by 18.6% for the 2023/2024 year.
The increase in tariffs was to due to take effect in April this year.
This comes after Eskom reportedly asked NERSA for a 32.66% increase in electricity tariffs in June last year, as a means to address financial sustainability and liquidity issues.
“The main drivers of Eskom’s revenue application are the regulatory asset base (RAB), primary energy, independent power producers (IPPs), operating costs and depreciation. In addition, an amount of R15bn will be added to the determined allowable revenue in compliance with the court order of 6 June 2022,” it added in a statement.
“The Energy Regulator made its decisions after conducting the due regulatory process, which included publishing Eskom’s revenue application and inviting written comments from stakeholders. The Energy Regulator also conducted public hearings to solicit comments from interested and affected stakeholders. As a result, NERSA received approximately 2000 written comments from stakeholders, who raised concerns about affordability,” Nersa said.
“It is important to note that Eskom’s revenue application for the 2023/24 and 2024/25 financial years was considered against various challenges that are affecting the South African economy. Accordingly, the Energy Regulator’s decision provides a balance between the sustainability of Eskom and the economic well-being of the consumers and the economy.”
Premier of the Western Cape, Alan Winde said he was “disappointed” in NERSA’s decision.
“I’m deeply disappointed in NERSA’s decision to grant Eskom an 18.65% tariff hike for the 2023/24 financial year. This is another blow to already hard-pressed citizens, particularly poor residents who are unable to make alternative arrangements & rely on this essential service,” he wrote on Twitter.
I’m deeply disappointed in NERSA’s decision to grant Eskom an 18.65% tariff hike for the 2023/24 financial year. This is another blow to already hard-pressed citizens, particularly poor residents who are unable to make alternative arrangements & rely on this essential service. pic.twitter.com/nrsKQ3brhD
— Premier Alan Winde (@alanwinde) January 13, 2023
A petition to “Change The Electricity Regulation Act of 2006 Chapter III” was started on change.org and, at the time of writing, has amassed over 4 000 signatures.
“Government should amend the Electricity Regulation Act to create a competitive energy market in South Africa,” wrote Rick Bronkhorst who started the petition.
“The Free Market Foundation (FMF) argues that South Africa’s electricity challenges are due to two words in the Act – no person.
“Changing ‘no person’ to ‘every person’, the FMF said, will open the supply of energy in South Africa and solve its energy crisis.
“’The government should allow every person or business capable and willing to participate in power generation’.”
South Africans took to social media to express their dismay at the decision.
“The decision by the National Energy Regulator of South Africa (NERSA) to increase electricity tariffs by 18.65%, despite consumers spending over 120 days in darkness in 2022”
This just ruined my day.
— Juan Badenhorst (@hoppah_) January 13, 2023
What can we do to change this ?? I’m tired
— Mpho!Beauty&BeeNavy ❤️❤️?? (@ThuliSaul_) January 13, 2023
How do we as people survive when we need to budget for electricity before food. Then the cherry on top is that we pay the highest prices with no guarantee of a sustainable service
— Justin Colbert (@zuess_1) January 12, 2023
So basically citizens have to now pay for the mismanagement of funds and corruption on Eskom’s side. The audacity.
— ilusca (@Ilusca_K) January 12, 2023
Have you considered that eskom debt will be paid by taxpayers as per finance Minister last October, now you have again punished the taxpayers again.
— Sabelo Nkomonde ka Maphanga (@SabeloNkomonde1) January 12, 2023
What about the tax MONEY I pay, during apartheid tax money was enough to run the SOE without milking poor people,why can’t the same happen now under the ANC?
— Kgothatso Mokotong (@mokotongeug) January 12, 2023
You didn’t think of the citizens at all and what are the remafications if eskom doesn’t end loadshedding after receiving this increment? Why must the citizens of SA pay for a service they not getting? What will stop Eskom for applying for another tarrif hike?
— Baba Ka Champ (@Ta_Power) January 12, 2023
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Picture: Picture: Twitter/ @RickBronkhorst
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Compiled by Junaid Benjamin
