Nersa (National Energy Regulator of SA) has finally made their decision on the upcoming Eskom tariff increase for the 2022/2023 year on top of legacy decisions based on previous years. Rather than the 20.5% increase proposed by Eskom, the energy regulator has approved a tariff increase of 9.61%. Although this increase will still have a major effect on consumers and businesses, many are breathing a sigh of relief knowing that Eskom’s original proposed increase has been rejected.
The Eskom tariff increase of 9.61% will be put into place from 1 April for Eskom customers and 1 July for municipal customers. Municipalities are also expected to add a surcharge for customers that may result in increased costs.
What to Know About the Eskom Tariff Increase
Here’s what we know about the upcoming Eskom tariff increase.
Eskom argued that the majority of its proposed tariff increase was driven by factors outside of its control. These include the need to increase energy from independent power producers and the increased carbon tax. The last year saw a lot of talks between Nersa and the power giant, resulting in Eskom approaching the courts in December to secure an order for Nersa to review their 2022/2023 application as soon as possible, in order to put the proposed tariffs into place by 1 April 2022 and allow them to apply adjusted rates to customers.
Speaking to Fin24, Calib Cassim, Eskom’s chief financial officer, said about the final approved tariff: “The financial implications of this decision on Eskom’s long-term sustainability will need to be further understood. It is understood that Nersa considered the impact on consumers and the financial sustainability of Eskom as it made its decision”.
Cassim stated that the Eskom board would “deliberate further” and then decide how they could “continue to sustainably provide electricity to the extent possible in the context of this revenue decision”.
Wondering how your business can continue to save power, even after the new tariffs are put into place? At Energy Management Solutions, our goal is to help you save costs and resources. From utility management to remote metering, we will help you survive the increased pressure and costs that will arise from the upcoming Eskom tariff increase.