The National Energy Regulator of South Africa (Nersa) has not approved Eskom’s application for a 25.3 % tariff hike for the 2015-16 financial year and instead instituted a fast-track public consultation process.
This is a victory for all electricity consumers.
The DA has welcomed Nersa’s decision to allow the public to make submissions but has strongly disagrees with further tariff increases due to the over use of diesel-power open cycle gas turbines to keep the lights on.
Eskom and the government can’t force the general consumer to pay for the mismanagement of the utility.
Eskom had applied for a selective reopening of the final three years of the third multi-year price determination (MYPD3) decision.
In its application Eskom sought approval to increase its 2015-16 tariffs to 25.3 % inclusive of the 12.69 % already granted in the current financial year.
Nersa is bound by its mandate to only allow the revenue an efficient operator needs.
As the Eskom crisis deepened in recent months, government has repeatedly stated its support for higher tariffs.
Going forward, NERSA will have its job cut out to maintain its independence and balance the needs of Eskom, its shareholders and consumers.