24 February 2010 – The National Energy Regulator of South Africa (Nersa) announced on Wednesday that the proposed electricity tariff hike has been approved and will be increased by 24.8% starting from April 1st, 2010. Furthermore, Nersa has already approved future power tariff increase of 25.8% on April 1st, 2011 and 25.9% on April 1st, 2012. Ultimately this means that current electricity prices in South Africa will be close to doubled by April 2012.
The state owned power utility, Eskom, had requested price increases of up to 45% over the next three years but decreased the figure after many protests were received from local mining companies. Eskom looks to the future recognizing the need the raise R385 billion in the next three years in order implement its power expansion programme. Eskom was hoping that Nersa would approve a percentage increase closer to 35% which would be an increase from last year’s 31% electricity price increase. Nersa’s announcement on Wednesday will be followed by a round of public hearings on the matter.