The National Energy Regulator of South Africa (NERSA) confirmed today that it has approved Eskom’s application for a tariff hike. In a statement it said: “The Energy Regulator decided that the average tariff for standard tariff customers be increased by 9.4% for the 2016/17 financial year only.”
In addition to this, the NERSA also announced the following decisions:
- The RCA (regulatory clearing account) balance of R11, 241 million is recoverable from the standard tariff customers, local SPAs (special pricing agreements) and international customers in the financial year 2016/17.
- The amount of R10, 257 million is recoverable from standard tariff customers for the 2016/17 financial year only.
- The amount of R983 million is recoverable from Eskom’s local SPA customers and international customers for the 2016/17 financial year only.
- Eskom must submit a new MYPD (multi-year price determination) application within three months, based on revised assumptions and forecasts that reflect the recent circumstances.
“The Energy Regulator made the decision after conducting due regulatory process, which included publishing Eskom’s RCA application and inviting written comments from stakeholders. Public hearings were conducted in six of South Africa’s provinces between 18 January 2016 and 5 February 2016 to afford interested and affected stakeholders the opportunity to present their views, facts and evidence,” explained NERSA.
Further details as to the reasoning behind NERSA’s decision are still to be released.