HomeAfrica

ESKOM Approaches Court Seeking Permission To Increase Tariff To Get R69 Billion From Consumers

4 years agoSun, 19 Jan 2020 18:28:07 GMT
Share on FacebookShare on TwitterShare on LinkedIn
ESKOM Approaches Court Seeking Permission To Increase Tariff To Get R69 Billion From Consumers

South Africa power utility, ESKOM has revealed plans to increase tariffs, a development that will see the power utility getting an additional R69 billion in revenue.

The review of tariffs is however dependent upon the High Court ac­cepting Eskom’s ar­gu­ments about the need for a much nar­rower ap­pli­ca­tion of the tar­iff method­ol­ogy.

Tariffs are set to in­crease by only 8.1% in April and 5.22% a year later but if Eskom’s application is suc­cess­ful, power tar­iff in­creases for this year and next year will have to be set at 16% to make up the short­fall.

Meanwhile, South Africa’s National Energy Regulator (Nersa) said it tested the rea­son­able­ness of Eskom’s al­low­able re­turn on as­sets as well as the tar­iffs and found that Eskom’s re­turn was too high and that the tar­iffs would be un­af­ford­able if the ad­just­ment was not made.

How­ever, Chaskalson em­pha­sised that this method­ol­ogy was sub­ject to the Elec­tric­ity Reg­u­la­tion Act which de­termines that Nersa must en­able an ef­fec­tive li­cence holder (Eskom) to re­cover the full costs of its li­cence ac­tiv­i­ties and a rea­son­able profit mar­gin or re­turn from tar­iffs.

Latest Tecno Pop 8 - now available in Pindula.

$94, Cash on Delivery in Harare & Bulawayo.

WhatsApp: 0783 450 793

Eskom has been struggling to contain load-shedding which resulted in its chairperson Jabu Mabuza resigning from his post.

More: Press Reader

Tags

0 Comments

Leave a Comment


Generate a Whatsapp Message

Buy Phones on Credit.

More Deals
Feedback