The latest Eskom tariff increase is set to be implemented amongst municipal customers next month, following regulatory approval.
The South African state-owned power utility, Eskom, has implemented the National Energy Regulator of South Africa’s (Nersa’s) decision of an average 2.2% tariff increase for the 2017/18 financial year.
Eskom tariff increase
In a statement on Monday, the parastatal noted that the increase was effective for Eskom customers from 1 April 2017.
Adding that municipal customers will experience an average 0.3% increase with effect from 1 July 2017.
Eskom chief financial officer Anoj Singh says: “The previous multi-year decision made by Nersa for the period 1 April 2013 to 31 March 2018 comes to an end on 31 March 2018; therefore, there is a need for Eskom to make the next application. Nersa has approved that Eskom can make a revenue application for a single financial year – the 2018/19 year.”
Adhering to standards
In order to meet the relevant legislative and regulatory requirements, the Eskom Board had approved a draft revenue application for consultation with the South African Local Government Association (SALGA) and the National Treasury, which was submitted to the two organisations during April 2017.
The utility explained that the Municipal Finance Management Act (MFMA) requires Eskom to consult with these entities before submitting its final revenue application to Nersa.
“They are allowed 40 days to provide comments. Eskom has received their responses,” the parastatal said.
The responses from SALGA and National Treasury are being considered. Eskom envisages that it would submit the final revenue application to Nersa during June 2017.