Nersa wants proof of financial efficiency at Eskom

Nersa is part of a panel discussing South Africa’s electricity crisis in Johannesburg this afternoon.

FILE Picture: Reinart Toerien/EWN

JOHANNESBURG - The National Energy Regulator of South Africa (Nersa) says it wants evidence of efficient financial operations at Eskom as it prepares to consider the power utility's application for another tariff hike.

Nersa is part of a panel discussing South Africa's electricity crisis in Johannesburg this afternoon.

Eksom has requested a 25.3 percent price hike, of which 12 percent has already been approved.

Nersa's Mbulelo Ncetezo said the regulator is yet to review Eskom's application for another price hike.

"We are planning to make a decision by July or August for implementation, maybe September."

Ncetezo said the power utility has cited a shortfall in revenues and increasing diesel costs as some of the reasons for its application.

In addition to the already approved price hike, Eskom is requesting an additional increase of just over 12 percent.

Nersa said it want to see funds allocated for expenses such as fuel and other operating costs have been used effectively.