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Eskom set to hike electricity prices

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Power utility Eskom is expected to hike electricity tariffs by over 8 percent next year, the National Energy Regulator said on Wednesday.

“There will be a tariff adjustment for 2015/2016. So there will be an additional increase to the 8 percent that was previously granted,” said Nersa spokesman Charles Hlebela.

The exact percentage hike would be determined by April 2015, he said.

Earlier, Nersa announced it had approved the regulatory clearing account (RCA) for Eskom.

The RCA is a regulatory mechanism that allows Eskom to adjust for over-or under-recovery of revenue, as initial price determinations are based on projections and assumptions.

“The National Energy Regulator of SA (Nersa) announced today that it has approved the regulatory clearing account balance of R7.8 billion for Eskom Holdings SOC Limited,” the regulator said in a statement.

Eskom had initially applied for a cumulative RCA balance of R18.3 bn.

“The approved RCA balance is for the second multi-year price determination (MYPD2) control period, 2010 to 2013, and will be implemented in the 2015/16 financial year.”

The regulator would draft an implementation plan that would determine exactly how Eskom would recover the money.

Eskom has been asking for an equity injection of at least R50bn to solve its cash-flow problems.

On Tuesday the power utility painted a gloomy picture of its books, telling MPs it faced a R225bn revenue shortfall, partly as a result of being granted lower-than-expected tariff increases by Nersa. SAPA

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