Nersa to decide on Eskom’s 15% tariff hike request

This follows months of public hearings across the country where many businesses argued that another tariff hike will have catastrophic consequences for the economy.

FILE: The Nersa panel listens to hearings on Eskom's proposed tariff increase. Picture: @NERSA_ZA/Twitter

JOHANNESBURG - The National Energy Regulator of SA (Nersa) is expected to make an announcement on Thursday on Eskom’s application for yet another tariff hike.

The power utility has asked for a 15% increase over the next three years.

This followed months of public hearings across the country where many businesses argued that another tariff hike would have catastrophic consequences for the economy.

If the 15% tariff hike is granted, it would come on the back of a hefty petrol price increase and cause more strain on already struggling South Africans.

Eskom has been arguing for some time that it’s battling financially but consumers and big business have been resistant to the calls for yet another tariff increase.

Business Unity South Africa said Nersa must only approve inflation-linked increases until the electricity supply industry in the country has been restructured.

Energy experts have described Eskom’s application as short-sighted and reckless, saying it would no longer serve the interests of the economy.

After considering all arguments during the public hearings, it’s ultimately up to Nersa to make the final decision.

(Edited by Thapelo Lekabe)