ESKOM’s request to be granted an effective
16.6% tariff increase this year is widely opposed by stakeholders and
the public who have made submissions to the National Energy Regulator of
South Africa (Nersa), Thembani Bukula, Nersa member for electricity, said on
Monday.
Nersa is in the process of holding public hearings on Eskom’s revenue-clearing account, a mechanism that allows the utility to recover unanticipated costs that arose while generating electricity.
The costs are recovered from consumers retrospectively by adding them on to the next year’s tariffs. However, in order to do so, the regulator must deem that the additional costs pass efficiency tests and were prudently incurred.
Eskom is claiming an additional R22.8bn from the 2013-14 year, which will amount to an 8.6% tariff increase. This would be on top of the 8% increase agreed for 2016.
Mr Bukula said most submissions recognised the need for Eskom to be allowed some additional cost recovery through the tariff, but not the full 8.6%.
The costs are recovered from consumers retrospectively by adding them on to the next year’s tariffs. However, in order to do so, the regulator must deem that the additional costs pass efficiency tests and were prudently incurred.
Eskom is claiming an additional R22.8bn from the 2013-14 year, which will amount to an 8.6% tariff increase. This would be on top of the 8% increase agreed for 2016.
Mr Bukula said most submissions recognised the need for Eskom to be allowed some additional cost recovery through the tariff, but not the full 8.6%.
