Electricity prices will increase by 9.61% as of April instead of 20.5% application by Eskom.

The National Energy Regulator of South Africa (Nersa) on Thursday announced its approval of 9.61% electricity price increases.

Eskom had applied to Nersa in December for a 20.5% increase.

“Nersa made its decisions after conducting the due regulatory process, which included publishing Eskom’s revenue application and inviting written comments from stakeholders,” Charles Hlebela said.

Hlebela said it received more than 60 000 comments from private individuals, who all raised affordability concerns.

“It is important to note that Eskom’s revenue application for the 2022/23 financial year coincides with various economic and social issues currently affecting the South African economy.

“Accordingly, the Energy Regulator’s decision provides a balance between the sustainability of Eskom and the economic well-being of the consumers and the economy.”

The national treasury in its 2022/23 financial budget detailed that Eskom has thus far been provided with R136-billion to pay off its debt with a further R88-billion until 2025/26.

ALSO READ: Eskom security guards shot at and robbed at Winterveldt substation

DA mineral resources and energy shadow minister Kevin Mileham said while the tariff increase of 9.61%, was “still high”, it is a long way off the 20.5% requested by Eskom.

“This increase, which may very well be challenged in court by Eskom, will still be a blow to South Africans who are already crippled under the skyrocketing cost of living,” Mileham said.

“Fuel price increases, food and transport cost increases, consumer price increases, and all government tariffs are bombarding South Africans relentlessly.”

During the presentation for increase Eskom CFO Calib Cassim attributed factors affecting electricity increases to national economic growth; commodity prices; structural changes to the economy (e.g., reduction of mining and manufacturing and growth in services); technological changes; electricity intensity levels; and population growth.

ALSO READ: Saulsville commuters to be serviced by ‘new blue electrical trains’

The 20.5% increase had received unwelcome responses from residents as well as politicians.

Mayor Randall Williams rejected the proposed increase describing it as “exorbitant and having a detrimental effect” on residents.

Resident Sean James said the hike would be devastating and have a ripple effect on the overall markets.

“We recently had price increases on rates and taxes and this additional cost is concerning,” he said.

Cost of living was fast becoming unaffordable, he said.

“The cost of the increase will be transferred to food costs and other things. Everybody will feel it, from the poor of the poor to the middle-class working people.”

Pretoria east resident and Kruisbande business owner Lizelle Schneider said the increasing costs might see her close down her businesses.

Schneider told Rekord that she had to start a new business after she and her husband lost their jobs during the first hard lockdown in 2020.

“Everything is going up without thinking about the losses people had during Covid.”