The power utility has welcomed Nersa’s decision to grant it a 18,65 electricity tariff hike saying it is a positive step to assist with its finances however it still awaits reasons for the decision.
Eskom had requested the regulator to increase the tariffs by 32% for 2023 starting in April and in welcoming the increase, its CFO, Calib Hassim said the decision will positively contribute from a financial sustainability point of view.
“The revenue determination of R319 billion and R352 billion for the financial years 2024/5 will allow a further migration towards a price level that reflects the efficient cost of producing electricity,” said Cassim.
However, there is a lot of unhappiness from consumers who are feeling the brunt of load shedding and who believe any increase in tariffs is unwarranted and unjustifiable because of the current situation with loadshedding now escalated to Stage 6 until further notice.
Small businesses who cannot afford alternative and expensive energy supplies, especially, are reeling and face closure because of load shedding, while households complain they are being charged more for an unreliable electricity supply.
An upbeat, Eskom said it is however still waiting for the “reasons for the decision for the determination made by NERSA that will provide further insights on how the revenue determinations for FY2024 and FY2025 were derived”.
Eskom escalated loading shedding to stage six on Wednesday citing severe capacity constraints. The power utility says minimizing load shedding is its “highest priority and continuous focus at all levels in the organization is being given.
“Eskom notes the tempering of the volume of diesel for the operation of open cycle gas turbines to a load factor of 6%. It is evident that both Eskom and NERSA are aligned and that every effort needs to be made to improve the energy availability factor at Eskom power stations,” said the statement.
“The shortage in capacity due to both Eskom performance and the delays in the Independent Power Producers projects need to be addressed. It is noted that NERSA has reconsidered capital related costs when compared to the previous decision. This significantly contributes to allowing Eskom to recover costs related to debt commitments.”
