The National Energy Regulator (NERSA) on Thursday granted power utility ESKOM an 18.65% tariff increase, which is way below the 32% tariff increase that ESKOM had applied for.
The increases will be effective from 1 April this year.
Regulator Member for electricity Regulation, Nhlanhla Gumede conceded that the decision to increase tariffs was a tough one considering that consumers are facing financial challenges.
Gumede, however, said that given the rolling power cuts and the difficult operating environment that ESKOM is currently facing, they were left with no choice but to hike electricity tariffs. Said Gumede:
We need to safeguard the need of the current and future users and we need to try and achieve efficiency.
We need to try to achieve efficient, effective and sustainable development of the electricity supply infrastructure.
We need to facilitate investments both in the supply and the demand side we need to promote universal access to electricity.
We need to promote competitiveness and customer and end-user choice. Importantly, we need to facilitate a balance between the interest of consumers and that of end users, licensees and investors in the supply industry and the public.
Independent economic and energy analyst Tshepo Kgadima recently said the electricity tariff has increased by a whopping 753% over the last 10 years and blamed politicians for the increase. Added Kgadima:
There is no economy anywhere that can remain competitive, that can continue to industrialise with such electricity tariff increases.
Meanwhile, Stage 6 rolling blackouts have been implemented continuously from 4 PM on Wednesday until further notice.
ESKOM said 11 generators amounting to 5 084MW of capacity suffered breakdowns since Tuesday morning. | SABC News