Public urged to comment on Eskom tariff hike

Monday, May 18, 2009

Pretoria - South Africans have until 2 June to submit their comments in relation to Eskom's proposed 34 percent tariff increase, according to the National Energy Regulator of South Africa (Nersa).

Eskom last week made an application to the regulator to increase its tariffs.

"Nersa would like to encourage all stakeholders and the public to actively participate in this process by submitting written comments on the Eskom Interim Price Increase Application," said the regulator in a statement.

The regulator has decided to shorten the application processing time due to finalization of Eskom's funding model as well as for municipalities to comply with requirements of Section 42 of the Municipal Finance Management Act.

"In order for municipalities to comply with the requirements ... tariff increases for the 2009/10 financial year must be implemented with effect from 1 July 2009. A decision on the Eskom interim price Increase application by June 2009 will enable municipalities to meet the deadline," said Nersa.

If the decision is made later than next month, this will result in dire consequences for municipalities as municipalities will only be able to implement the increase only in the next financial year.

The parastatal's application also includes some of its operating expenditure. The outstanding expenditure is expected to be included in another application.

The public hearings are scheduled for 8 and 9 June, the deadline for registering to attend the hearings is 2 June.

Nersa will then consider the request before coming to a decision on 25 June.

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