POLOKWANE – The National Energy Regulator (NERSA), on Tuesday, approved a 9,4% electricity hike for 2016/17.
NERSA chairperson Jacob Modise said the decision came after extensive consultation with government, unions, small and intensive users who engaged in public hearings in six provinces as he says that the public’s interest as well as stakeholders’ input was taken into consideration.
Last year, in November, Eskom submitted an application to Nersa to recover R22,8 billion, which the power utility said it used to avert load shedding.
NERSA, however, only granted the power utility half of the R22,8 billion that it requested.
The hike will take effect on 1 April. This, despite customers voicing dissatisfaction with a proposed increase. Eskom, however, says the hike was neccessary as it needed a 16,6% hike to recover R22,8 billion.
Modise added the balance of R11,2 billion is recoverable from standard tariff customers for the 2016/17 financial year.
“The average tariff for average standard customers, will be increased by 9,4 percent for the 2016/17 financial year only.”
However, this is not the only increase for electricity as a municipal tariff increase is on the cards for July as well which will make electricity even more expensive.
Modise has warned users to be conscious of their electricity usage so that the hike won’t affect them as much.
Finance Minister Pravin Gordhan said tariff increases should only be approved if deemed necessary.
“Regarding tariff increases, are they necessary or just comfortable in a particular environment?” Gordhan asked in last week’s budget speech.
“We need to improve governance, financial management and state-owned entities’ contribution to the developmental agenda,” he said.
Municipal tariff hike will come into effect in July
Polokwane Municipal Spokesperson Tidimalo Chuene confirmed there would be a tariff hike from the national utility as well as a municipal tariff which will come into effect in July this year.
This will further increase the price of electricity meaning people will have to pay even more for their monthly bills.
Review calculated an estimate of what electricity would cost in the new year given the new tariff hike by NERSA, comparing last year’s tariffs increase of 12,69% to this year’s 9,4% increase.
The amounts will increase further after the municipality announces its official tariff hike in July.
