Get ready for a 12.7% electricity price hike

Consumers will be hit with a 12.69 percent electricity tariff hike next year, the National Energy Regulator of SA (Nersa) announced on Friday.

Nersa approved Eskom’s plans to recoup losses after it had under-recovered money during the multi-year-price-determination 2 (MYPD2) control period between 2010 and 2013.

“Nersa announced today [Friday] that it has approved the implementation plan of the Regulatory Clearing Account [RCA] balance of R7.818 million for Eskom Holdings SOC Limited,” Nersa said in a statement.

“The RCA balance will be a once-off recovery from the standard tariff customers as well as other Eskom customer categories and will only be implemented in the 2015/16 financial year.”

This meant consumers would pay an extra four percent on top of the eight percent hike approved under the MYPD3 control period.

“The implementation of the second multi-year-price-determination [MYPD2] RCA in 2015/16 will result in an average tariff increase of 12.69 percent for standard customer tariffs from the eight percent approved in the MYPD3 decision of February 2013.”

Nersa approved the RCA balance in July.

The RCA is a regulatory mechanism that allows Eskom to adjust for over-or under-recovery of revenue, as initial price determinations are based on projections and assumptions.

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Get ready for a 12.7% electricity price hike