Another electricity price hike looms
Nersa is considering Eskom's request for a 16.6 percent tariff increase in 2016.
SOUTH Africans may have to dig deeper into their pockets to pay for a further electricity tariff increase.
The National Energy Regulator of South Africa (Nersa) says the decision on whether or not to approve Eskom’s application for another tariff increase will be made before the end of next month
Questions have been raised about where budget will come from should Nersa approve Eskom’s tariff hike.
Public hearings commenced earlier this week in Cape Town, Port Elizabeth and Durban into the parastatal’s application for a 16.6 percent increase to recoup R22.8 billion.
The hearings will end in Johannesburg in the first week of February before Nersa makes a decision about whether or not it will approve the hike.
Eskom said it believed it had a strong case for increased tariffs but if Nersa turned it down, it would be in a tough financial situation.
Last June, the regulator rejected Eskom’s request for a 25.3 percent electricity tariff hike.
At the time, Nersa chairman Jacob Modise said the application was not in accordance with the requirements of Municipal Finance Management Act.
Sources: ECR News and Eyewitness News
