Nersa grants Eskom 5.23% tariff increase

Saturday, December 16, 2017

The National Energy Regulator of South Africa (Nersa) has granted power parastatal Eskom an average percentage price increase of 5.23% for the 2018/19 financial year.

The regulator announced its decision on Friday, 15 December after Eskom had applied for a 19.9% average increase in electricity tariffs for 2018/19, which would have resulted in total allowable revenue of R219.5 billion. Instead, the 5.23% tariff increase granted by Nersa will give Eskom allowable revenue of R190.348 billion.

Nersa said it had followed due regulatory processes in considering Eskom’s revenue application for 2018/19.

“On 13 September 2017, Eskom’s application was published on Nersa’s website, along with an invitation to stakeholders to submit written comments.

“A total of 23 000 written comments were received from stakeholders, consisting of comments from private individuals, small users, intensive energy users, non-governmental organisations and environmental activists, as well as local government and other stakeholders.

“The energy regulator conducted public hearings in eight provinces of South Africa from 30 October to 22 November 2017. The public hearings afforded interested and affected stakeholders the opportunity to submit their views, facts and evidence. A total of 96 oral presentations were made.

“The energy regulator appreciates and encourages stakeholder participation in its decision-making processes and would like to thank all stakeholders for their valuable comments and input,” said Nersa in a statement on Friday.

The regulator said the decision and the reasons for it will be published on its website -- -- in due course.

Nersa said it has further decided that the allowed revenues must be recovered from Eskom’s standard and non-standard tariff customers based on previously approved tariff principles and structures, using the Eskom Retail Tariff Structural Adjustment methodology that is approved by Nersa. –

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