File
Energy regulator Nersa sliced almost R30 billion off Eskom’s allowable revenue for 2021/22 and left it with an increase of 3.49%, which is way below the current inflation rate of 5.7%.
Eskom applied for R279 billion but Nersa set its allowable revenue at R250 billion, compared to R233 billion in the current financial year.
A further R14.4 billion was added in relation to legacy recoveries and court rulings. This brings the average increase that consumers will pay to 9.61%.
Nersa on Thursday (February 24) announced its determination of Eskom’s tariffs for the new financial year starting April 1. Electricity users who buy directly from Eskom will pay more from that date, while those who buy from municipalities will see their bill increased from July 1.
The utility consistently argues that its tariffs are not yet cost-reflective and are inadequate to cover its debt service cost. Eskom is buckling under a R400 billion debt burden and its hopes that government would take over about half of that seem to be in vain.
In his maiden Budget Speech on Wednesday (February 23), Finance Minister Enoch Godongwana said National Treasury is working on a long-term solution.
Eskom should sell some assets to raise some of the funds it needs, he said. At a press briefing prior to the speech, Godongwana indicated that such asset sale is a precondition for the anticipated major debt relief.
He provided for R88 billion of assistance for the utility over the next three years.
https://www.moneyweb.co.za/news/south-africa/nersa-hasnt-even-given-eskom-a-cpi-increase/
