Electricity consumers in South Africa have had to fund municipal power losses due to crime and mismanagement for years, business chamber boss Melanie Veness has said.
Nersa has been setting municipal power tariffs this way for the past decade, and the Supreme Court has given the regulator 12 months to rectify its methodology. Nersa’s current methodology involves publishing a yearly guideline to advise municipalities on the percentage by which they may increase their electricity tariffs. It also provides price bands to indicate the rates for different user groups.
According to Nersa, Eskom’s calculations don’t paint the full picture, and it is actually asking for an overall price increase of 38%.For reference, Eskom applied for a 20.5% increase for the 2022/23 financial year, with Nersa onlyThe power utility has applied for a 32.06% electricity tariff increase for the 2023/24 financial year, slightly reducing itsNersa is currently consulting on Eskom’s Multi-Year Price Determination 5 revenue application for the 2024 and 2025 financial years.
Despite the amendments, Eskom said its total revenue as applied for in June 2021 — R335 billion for the 2024 financial year and R365 billion for the 2025 financial year — remained roughly the same.A City of Tshwane spokesperson confirmed that Eskom’s proposed electricity tariff changes“The proposed changes will indirectly impact the City’s residents as 74-76% of the City’s tariff increases are direct pass-through for bulk purchases from Eskom,” they said.
Exactly. And precisely why I'd rather take my chances elsewhere. I love this country, but there seems that past and ongoing poor leadership, ineptitude no accountability and a small income bearing base which are expected to constantly pay into their sinkhole of a coffers.
Sure this has absolutely nothing to do with sweetheart, evergreen contracts signed with energy hungry industries . The thieves and mismanagement are the only problem. This is like arguing for the nutritional value of lettuce in a double cheeseburger with extra cheese and bacon.