South Africans are in for a hefty rise in the price of electricity, as the National Energy Regulator of South Africa (Nersa) has agreed to Eskom increasing its tariff by over 15% for the 2021/22 financial year.
The agreement between Nersa and Eskom came after the power utility won a case in the Pretoria High Court in October 2020, which allowed it to push for a higher tariff increase than what Nersa was willing to allow.
Under the agreement, an amount of 5.44c/kWh will be added to the average standard tariff, bringing the rate Eskom customers will be forced to pay in the 2021/22 tariff year to 134.30c/kWh – a 15.63% increase.
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The increase will see the debt-laden Eskom raise a further R10 billion in “allowable revenue”, according to a court order issued by Judge Joseph Raulinga.
Though the tariff increase is a further blow to cash-strapped South Africans, it’s a boost for the beleaguered power company, which has over R400 billion in debt and is owed R31.5 billion in overdue debt by several municipalities.
Read: Eskom gets tough with errant municipalities, grabs cash and land