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Eskom tariff increase approved

26 June 2009 – A tariff increase of 31.3% has been granted to Eskom, the National Energy Regulator of SA said on Thursday 25 June.

CMatjilaAccording to NERSA Chairman, Collin Matjila, this will result in an average tariff increase from 24.24 cents per kilowatt hour to 33.14 cents.  The new tariff will come into effect on 1 July.

Estimated standard tariff revenue will increase by R62 031 billion from distribution standard tariff sales of 198 857 gigawatt hours.

The price increase included a 15% price increqase for poor customers. 

Matjila said Nersa would conduct a "verification" of all costs and "costs determined not to have been efficiently incurred in line with the multi-year price determination rules". These costs would be "clawed back".

NERSa had 175 written submission on the Eskom tariff application, in addition to 21 oral applications, which were taken into consideration when the determination was made. 

Matjila further noted that Eskom was required to cut costs and in future would be required to submit its price increase application six months ahead of the date it would take effect. Additionally, NERSA would issue minimum requirements in terms of information needed for tariff applications.