Nersa: Eskom tariff hike decision depends on its financial prudence

Eskom wants a 16.6% tariff hike in April and 16.72% next year to secure more than R27 billion from taxpayers.

The Nersa panel listens to public comments on Eskom's request for tariff increases in Midrand on 24 February 2020. Picture: @NERSA_ZA/Twitter

JOHANNESBURG - The National Energy Regulator of South Africa (Nersa) said its decision on whether to grant Eskom a tariff increase would depend on whether the utility has been prudent with its finances.

Nersa held its final day of public hearings on Monday.

Eskom wants a 16.6% tariff hike in April and 16.72% next year to secure more than R27 billion from taxpayers.

Eskom spent the first half of Monday’s hearings answering questions on pricing, load shedding and maintenance.

But it was clear from chairperson Nomfundo Maseti’s response that the commission was not satisfied.

“There’s a lot of things we’ve asked for from them. You have heard them promise to give us more information and clarification, so we will look into that information that whether some of these costs were incurred efficiently and prudently.”

Eskom has been given until Friday to give more substantive answers.

Nersa is expected to announce its decision at the end of next month.