As stage 6 of load-shedding continues and shortly after Eskom admitted that load-shedding alone is not enough to stabilise the grid, consumers have been dealt another blow – a whopping increase in the cost of electricity.

The National Energy Regulator of South Africa (Nersa) yesterday announced that they have, among other things, approved an 18.65% tariff hike for the 2023/24 year that starts in April.

The increase is lower than what the power utility applied for – 32.17% – but still a major blow to budgets.

Nersa has approved a total revenue of R300b for the 2023/24 financial year, which translates to a tariff of 173.80c/kWh. The percentage increase is 18.65%, based on Nersa’s approved tariff of 146.48c/kWh in the 2022/23 financial year.

The energy regulator says the decision was approved after a ‘due regulatory process’ was carried out, which included publishing Eskom’s revenue application and inviting written comments from stakeholders.
An increase of 12.74% for the following financial year has also been approved.

#EskomMediaStatement

Eskom appreciates the tough NERSA revenue decision for FY2024 and FY2025 pic.twitter.com/nEzIM0AmSJ

— Eskom Hld SOC Ltd (@Eskom_SA) January 13, 2023

Load-shedding alone cannot save grid

In a January 11 letter to the City of Mbombela manager, Wiseman Khumalo, the senior manager of customer care for Eskom’s Mpumalanga operating unit, Motshabi Mokgatlha, admitted that national load-shedding has been wholly inadequate in protecting the integrity of the national electricity grid, which is why additional load-reduction has been implemented in some areas.

“Eskom has exhausted all available levers. Open cycle gas turbines and diesel are at their full utilisation, emergency reserves have been depleted and Eskom has had to implement high levels of continuous load-shedding.

“The next lever that we have to draw on to assist in maintaining the stability of the grid and infrastructure is the proportionate reduction on the demand side,” Mokgatlha said.

With the weekend here, it is as yet unclear if South Africans will be given a reprieve from the relentless planned power cuts, or if stage 6 will continue without a reprieve.