South African consumers and businesses face a flurry of price increases in the coming weeks as a combination of global factors and local changes take effect.
The National Energy Regulator of South Africa (Nersa) announced on Thursday that Eskom’s tariff would rise by 9.61% on April 1, an increase that is less than half the 20.5% hike for which Eskom had applied. The tariff decision includes allowable revenue of R250-billion, against the R293-billion for which Eskom applied, which translates to a sub-inflation increase in the retail tariff of 3.49%.
State-owned electricity producer Eskom sought to demonstrate the economic prudency of running the diesel-fuelled open-cycle gas turbines (OCGTs) harder to mitigate load-shedding during the fourth day of National Energy Regulator of South Africa (Nersa) public hearings into its latest allowable revenue application. Eskom is seeking allowable revenue of R293.4-billion for 2022/23, which would result in a 20.5% tariff hike from April 1 if granted.