Embattled power utility Eskom has again apologised for the severe extent of load shedding, but at the same time welcomed a decision that allows it to hike tariffs by 18.65% in April.
Chief Financial Officer, Calib Cassim, was commenting on the announcement on Thursday by the National Energy Regulator of South Africa on Eskom's multi-year tariff application.
"Once NERSA makes Once NERSA makes a decision on the restructuring of tariffs (as submitted during August 2020 and 2022), these decisions will ensure Eskom can apply the tariff adjustments to its customers from 01 April 2023," he said.
Cassim said Eskom appreciated the tough decision by Nersa "and recognises the pressures this determination will place on consumers."
However, he said the decision would contribute positively from a financial and sustainability point of view.
"The revenue determination of R319 billion and R352 billion for the financial years 2024/5 will allow a further migration towards a price level that reflects the efficient cost of producing electricity."
Cassim said the shortage in capacity due to both Eskom's performance and the delays in the Independent Power Producers projects also needed to be addressed.
Eskom said in July 2022 the High Court ordered NERSA to undertake the necessary regulatory steps to assess, consult and make a determination on its 2024/2025 Multi-Year Price Determination Application.
