Eskom 25% price hike delayed?
While Eskom has reverted back to a daily load shedding schedule this week, the power utility may only get a 25.3% price hike next year.
In May, the National Energy Regulator (Nersa) announced that it had received Eskom’s application for the re-opening of tariff negotiations for 2015-16. The state owned entity made an application to hike tariffs by 25.3%.
Nersa said it would make a decision on June 29, 2015.
Energy expert Chris Yelland noted at the time that Eskom already implemented approximately half of the 25% increase for which it is making an application on April 1.
The 25.3% comprises 12.69%, which has already been granted, 10.1% for gas turbines and power purchasing, and a 2.51% increase for environmental tariffs.
On Tuesday (8 June), Yellend said that in light of a circular by Treasury to municipalities, Eskom may withdraw its application for 25.3% electricity price increase.
“We should know by week-end whether Nersa public hearings of 23 & 24 June into Eskom application for 25.3% price increase are delayed or not.”
Nersa told BusinessTech that it has not yet cancelled public hearings, as reported on social media.
“There is a Municipal Budget Circular for the 2015/16 Medium Term Revenue and Expenditure Framework (MTREF) that says that any decision that NERSA makes after 15 May 2015 will need to be deferred to the 2016/17 municipal financial year,” it said.
It added that Eskom is considering the implication of the above to their application submitted to Nersa ‘and we hope to get clarification later this week”.
Eyewitness News reported that Eskom says its application to Nersa for a price hike stands.
Eskom did not respond to BusinessTech by the time of publication.
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