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Nersa receives some praise for approving Eskom tariff hike

The regulator announced on Thursday that it has granted Eskom a 9.4% tariff hike for this year along with an increase of 8.1% for 2020 followed by 5.2% the following year.

Picture: EWN

JOHANNESBURG - Energy experts say that the National Energy Regulator of South Africa (Nersa)’s announcement of increased electricity tariffs is a delicate act of balancing the needs of the economy and putting pressure on Eskom to become a better performing utility.

The regulator announced on Thursday that it had granted Eskom a 9.4% tariff hike for this year along with an increase of 8.1% for 2020 followed by 5.2% the following year.

Some energy experts said Nersa had performed its job admirably.

A few organisations note that the regulator was in a difficult position but that a more holistic approach between the state, Treasury and Nersa was needed to get Eskom out of its financial woes.

Energy expert Chris Yelland said consumers should remember it’s not only the 9.41% increase for the year.

“It’s going to be more like 14% because there’s already been a 4.5% increase that has been awarded by Nersa for 1 April.”

Yelland said it’s unfortunate that Eskom had criticised the work of the regulator.

“And I think it should do that without commenting and criticising the competence of the regulator, and it should be the courts to decide these things.”

Nersa had instructed Eskom to provide a plan within the next six months about how it will cut costs.

(Edited by Thapelo Lekabe)