The National Energy Regulator of SA (Nersa) on Thursday granted Eskom an eight percent electricity tariff hike.<\/p>\n
“The decision of the energy regulator is based on facts,” Nersa chairwoman Cecilia Khuzwayo said.<\/p>\n
“The third multi-year price determination [MYPD3] will be eight percent over the next five years.”<\/p>\n
Eskom had applied for a 16 percent increase in electricity prices in each of the next five years.<\/p>\n
This was more than double the current price, taking it from 61 cents a kilowatt hour in 2012\/13, to 128 cents a kWh in 2017\/18.<\/p>\n
The current multi-price determination, MYPD 2, ends on March 31, 2013.<\/p>\n
Both MYPD1 and MYPD2 had spanned a period of three years.<\/p>\n
Khuzwayo said a detailed analysis was done on Eskom’s application.<\/p>\n
She suggested that Eskom had to ensure that it had alternatives to time tariffs.<\/p>\n
Khuzwayo said it was important to note that the MYPD3 application was made with the backdrop of “continuing global economic recession”.<\/p>\n
Khuzwayo said Nersa had followed due processes and held public discussions on the tariffs.<\/p>\n
The parastatal has previously said it needs the increase to cover the costs of supplying the electricity needed to power South Africa and invest in infrastructure.<\/p>\n
The proposed increase was met with criticism from political parties, unions, civil society, businesses, and South Africans in general.<\/p>\n
Eskom: hiking tariffs is the only way<\/strong><\/a><\/p>\n Eskom price hikes \u201cunavoidable\u201d: Govt<\/strong><\/a><\/p>\n Eskom seeks 16% tariff hike every year for 5 years<\/a><\/strong><\/p>\n