Nersa Requests Eskom To Reconsider High Tariff Increase

PICTURE: African News Agency

JOHANNESBURG: So far, Eskom has not been able to justify why it requires a tariff increase of 15%.

The National Energy Regulator of South Africa (Nersa) has described Eskom’s application for a 15% tariff hike as defective.

The energy regulator on Monday held public hearings on the power utility’s request in Midrand.

Nersa has requested Eskom to reconsider the high tariff increase.

Eskom’s tariff hike application has been largely scrutinized with concerns that the power producer is not being entirely transparent about its financial books.

So far, Eskom has not been able to justify why it requires a tariff increase of 15%.

Chairperson of the hearing Nomfundo Maseti said: “Where’s the information showing that? If there’s a price increase, this is the extent to which the demand is impacted, where is that information?”

At the same time, energy expert Ted Blom says Eskom is simply inefficient and doesn’t qualify for a tariff increase.

“I think this is shortsighted, reckless and non-prudent behaviour.”

Various organisations and energy experts made representations on Monday sharing similar views, saying Eskom’s proposed tariff hike is unaffordable.