The National Energy Regulator of South Africa (Nersa) has approved Eskom’s request to increase prices from 1 April this year.
The price increase to be implemented on 01 April to Eskom direct customers is still 12.69 percent and 14.25 percent for municipalities from 01 July this year.
According to Eskom, their financial position and lag in recovery of eligible expenditure does not afford their balance sheet the ability to pre-fund further costs necessitated by a constrained power system such as municipal generators and the increased use of open cycle gas turbines.
The constrains have also necessitated Eskom to explore options for further review of tariff increase for the 2015/16 financial year and submissions in terms of the Multi-Year Price Determination (MYPD) have been made to Nersa.
Cosatu has however vowed to take Eskom on over its plan for further electricity tariff hike on top of the 12.69 percent.
According to Cosatu, if their submission to Nersa to reject Eskom’s application fails, the trade union federation would consider rolling mass action.
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