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The Nelson Mandela Bay Business Chamber has welcomed the decision by the National Energy Regulator of South Africa to approve a 9.6% electricity tariff increase, despite Eskom seeking up to 20% in its latest application.
Chamber CEO, Denise van Huysteen, said while above inflation, it was far lower than the increase Eskom had been seeking.
"We do believe that our submission via Nersa's public participation process and via other engagements had a direct and positive contribution to this outcome. In particular, our arguments around Eskom's inflated asset base and the poor performance of their existing generation capacity would have had a bearing on this," she said.
Van Huysteen said the threat however remains with Municipal tariffs, which will only be decided in June.
"Given the massive electricity losses and inefficiencies, we are not protected from potential increases of up to 20%. Additionally, it is important to note that the base tariffs of Municipalities are too high and require a downwards rectification," she said.
The NMB Chamber noted that arising from the Eskom tariff decision. Nersa will now determine a guideline percentage increase applicable for Municipalities for the 2022 period.
"Given this, our electricity challenge continues and will focus on the principle of how the base of the existing tariffs to municipal customers is constructed," Van Huysteen said.
Eskom said on Thursday that the "financial implications of this decision on Eskom's long-term sustainability will need to be further understood."
"The Eskom Board will deliberate further before deciding on how to continue to sustainably provide electricity to the extent possible in the context of this revenue decision. In addition, Eskom keenly awaits the reasons for the decision that will provide further details on how the revenue determination was arrived at."
