Eskom to increase tariffs
Power utility, Eskom, has confirmed that the prices will increase on 1 April 2015.
Eskom has confirmed that tariffs for direct customers will increase by 12.69% on 1 April 2015, while municipalities’ price will up by 14.25% from 1 July 2015, the power utility said.
The tariff increase was approved by the National Energy Regulator of South Africa (Nersa) in November last year, Eskom said.
Due to previous non-cost reflective tariffs and the delay in recovery of eligible expenditure, the power utility said it cannot afford to pre-fund further costs required by a constrained power system such as short-term power purchases from independent power producers, municipal generators and the increased use of open cycle gas turbines.
“These requests have necessitated Eskom to explore options for further review of tariff increases for the 2015/16 financial year. Submissions in terms of the multi-year price determination (MYPD) methodology have been made to Nersa in this regard,” Eskom said in a statement.
The power utility said the environmental levy, which is yet to be announced by the minister of finance, could impact the required tariff resulting in price adjustments.
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