After being delayed by more than an hour by robust debate on what tariff increase should be given to Eskom, the National Energy Regulator of South Africa has granted the technically insolvent power giant permission to increase tariffs by an inflation-busting 9.4% for the 2019 financial year.
Modise said delays in making the announcement were caused by the fact that Nersa was dealing with two applications from Eskom — the first, an Regulatory Clearing Account application, to recoup money it had lost out on due to lower than expected sales; and the second concerning the tariff increase for the next three years.
While the increases are lower than Eskom had proposed, they are higher than the 4% consumer inflation recorded in January. The regulator said as part of its decision on Eskom’s tariffs it would also subject Eskom to “extensive prudency reviews, efficiency tests and performance thresholds”.