Consumers should be outraged by new tariff increase: Energy analyst

Independent Economic and Energy analyst, Tshepo Kgadima says consumers should be outraged by the new increases.

This means a consumer buying R1000 worth of electricity directly from Eskom will pay an extra R186.

Kgadima says the increases are above inflation and would be a disaster for the economy.

“Based on Eskom’s audited financial statements for the year ended 31 March 2022 , Eskom’s average revenue per kilowatt hour was already R1.71 and in the current financial year is already at R1.86 a kilowatt/ hour. And therefore it means in real terms, the consumer will not be paying R1.73 as Mr Bukula is asserting. But will be paying a hefty R2.21 a kilowatt an hour,” adds Kgadima.

Nersa announces decision on Eskom tariff increase:

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Tariff increase

The National Energy Regulator of South Africa (Nersa) granted Eskom an 18.65% tariff increase.

The power utility had applied for a 32% tariff increase.

Eskom made its multi-year price determination revenue application last year to the regulator.

The increases will be effective from the first of April this year.

Regulator Member for electricity Regulation, Nhlanhla Gumede says the decision to increase tariffs was a tough one given the financial constrains consumers are facing.

However, rolling blackouts and the difficult operating environment that Eskom is currently facing an increase was mandatory.

“We need to safeguard the need of the current and future users and we need to try and achieve efficient. We need to try to achieve efficient, and effective and sustainable development of the electricity supply infrastructure. We need to facilitate investments both in the supply and the demand side.”

“We need to promote universal access to electricity. We need to promote competitiveness and customer and end user choice. Importantly, we need to facilitate a balance between the interest of consumers and that of end users, licensees and investors in the supply industry and the public.”

EXPLAINER | Nersa’s decision to grant Eskom a tariff increase: Nhlanhla Gumede

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Source: SABC News (sabcnews.com)