NERSA approves tariff hike for Eskom

Approved revenue for Eskom for the following financial years:

• 2019/2020 – R206,380bn and this will result in an average of 9.41% price increase
• 2020/2021 – R221,843bn and this will result in an average of 8.10% price increase
• 2021/2022 – R233,078bn and this will result in an average of 5.22% price increase

How will the revenues be recovered

The allowed revenues of R3,869bn must be recovered from both Eskom standard tariff customers, local Special Pricing Arrangement (SAPs) customers and international customers.

Governance failures occurred in Eskom

NERSA acknowledged that Eskom conceded that certain governance failures occurred in Eskom and the extent of the governance failures or amounts associated therewith had not been fully quantified.

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The Energy Regulator may initiate its own investigation into the governance failures in Eskom and may effect adjustments to Eskom’s revenue based on the relevant outcome of its investigation.

NERSA’s proposals to improve Eskom’s operational efficiencies

Eskom should:

• Reduce costs and provide a plan within six months on cost cutting;
• Reduce unplanned outages and trips;
• Reduce water usage costs and develop a maintenance plan;
• Improve the Energy Availability Factor (EAF) by reducing the unplanned capacity loss factor (UCLF) and effectively executing planned outages;
• Reduce loadshedding.

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