Organised business in the Eastern Cape has welcomed the decision by the National Energy Regulator to reject Eskom's application for a 12.61% price hike, on top of the 12.69% increase which kicked in on the First of April.
Border-Kei Chamber of Business executive director Les Holbrook says Nersa clearly regarded Eskom's application as a bridge too far.
In a hard hitting statement on Monday in rejecting Eskom's application, Nersa chairperson Jacob Modise, said it did not comply with the Municipal Finance Management Act and Municipal Systems Act.
Eskom has been granted tariff increases in excess of inflation since 2008.
Holbrook feels the Regulator has now had enough and that today's ruling was a victory for both the Border Kei and Nelson Mandela Bay Business Chambers.
"The cost and the impact on business that have been our concern, the drive chambers have had to get NERSA to see the bigger picture. So yes we are very pleased we think anything above the original requirement that they asked for in terms of an increase was just a bridge just too far. Go towards the whole issue of governance and process that we have in South Africa, so it's a good one for us, definitely." said Holbrook.
Meanwhile, Eskom says it will consult the main shareholder, the Department of Public Enterprises, before commenting fully on the decision by the National Energy Regulator to decline its application for a price increase.
"The regulator has given us at least two options, one of which is to re-submit our application or to wait for the end of this NYPD3 period which ends in 2018 and apply for a new round which starts in 2019, we will have to weigh all the options." says Eskom spokesperson, Khulu Phasiwe.
