Page 15 - AfrElec Week 03 2023

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SA energy regulator

approves 18.65% electricity

tariff increase for Eskom

SOUTH AFRICA THE National Energy Regulator of South Africa has been trying to reform Eskom since taking
(Nersa) on Thursday (January 12) agreed to an office in 2018 to make it more efficient, but pro-
18.65% increase in electricity tariffs for the strug- gress has been slow, writes Reuters. The gov-
gling state-owned power utility Eskom from ernment has outlined plans to take on part of
April 1, News24 reports. Eskom’s roughly ZAR400bn ($24 billion) debt.
According to the media outlet, Eskom had According to Finance Minister Enoch
applied for a 32% tariff increase for the 2023/24 Godongwana, the government would take
year. The embattled state-owned enterprise on Eskom’s debt in steps. How much debt is
(SOE) also applied for a further 22.52% tariff absorbed by the government depended, in part,
increase for 2024/25 in the same application, on the price increase granted by Nersa, he said
with Nersa agreeing to a 12.74% increase. earlier on Thursday.
“The energy regulator attempted to strike a “It’s an important variable because it’s going
balance between Eskom’s financial sustainabil- to demonstrate to me Eskom’s sustainability in
ity issues, the impact on the South African econ- the long-term and ... therefore what debt should
omy, and affordability of electricity services to I take,” the minister was quoted by Reuters as
customers,” Nersa chair Thembani Bukula told a saying.
media briefing, as reported by Reuters. Eskom attributed large tariff hikes, in part,
Eskom is currently imposing rolling power to rising diesel costs. According to News24, the
outages known locally as “load shedding” for utility spent ZAR15bn on diesel in the 2021/22
between eight to 12 hours a day for households financial year, which is some ZAR9bn more than
and businesses across the country. The heavily what Nersa would allow it to recover through
indebted SOE implemented power cuts on more electricity tariffs for that year.
than 200 days last year, the most in a calendar The SOE recently reported a loss of
year. ZAR12.3bn for the year ended in March 2022,
South African President Cyril Ramaphosa says News24.™

Week 03 18•January•2023 www. NEWSBASE .com P15