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Electricity alternatives
January 2020

Eskom: What our electricity bills will cost after their upcoming tariff hike

If Eskom could sell that brass neck of theirs, all their money problems would be gone. This is what South Africans will pay when the tariff hike kicks-in.

Eskom tariff hikes – how much will they increase by?

Jan Oberholzer is the COO of the ailing state-owned business. He confirmed on Monday that Eskom will be in court next week, to fight a decision handed down by the National Energy Regulator of South Africa (Nersa). The power utility wants to raise their electricity tarrifs by more than double the suggested rate:

“We haven’t handed out a performance bonus in two years. If you look at our financial statements, the item that is being spoken about is misleading. The money has been set aside for 13th-cheques, which are part of the employment contract. Our application for a tariff increase doesn’t relate to our inefficiencies.”

“We cannot take public money for that, and certainly not R1.8 billion. We’re reviewing all supply contracts as we speak. The same goes for procurement. We do want to raise tariffs by 16%, and yes, it will pose a significant challenge to the economy. I agree.

Eskom tariffs for 2020

Eskom secured a 9.41% tariff increase for the 2019/20 financial year. That came off the back of a 4.5% increase in 2018, meaning that consumers saw bills shoot up by almost 14% in 2019.

Nersa granted Eskom permission to put their tariffs up by a further 8% in 2020. However, this did not sit well with the energy firm. They want the regulatory body to grant them a whopping 16% hike for this financial year.

Eskom also want prices to go up even further in 2021. In total, they were looking to secure a 45% increase over three years. Nersa instead decided to grant them just 22.3%, sparking the utility’s decision to take legal action.

What we pay for electricity in South Africa

So, one way or another, our bills will be going up again this year. But what does a 16% tariff increase actually mean for us, the customers? For starters, with every R1 you spend on electricity from April 2020 onwards, there would be an additional 16 cents to pay – and this is the difference it will make for Eskom:


Source : Tom Head
The south African

photo credit
led-supermarket pexels.com

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