Brace for above inflation electricity hike and municipalities’ power grab

  • 📰 mailandguardian
  • ⏱ Reading Time:
  • 54 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 25%
  • Publisher: 92%

South Africa Headlines News

South Africa Latest News,South Africa Headlines

Electricity could go up by more than 20% by April – find out just how bad the proposed “unfair, unaffordable and unjustified” price hike might be and how municipalities want to increase that. Eskom READ MORE:

applied to Nersa for an electricity price increase of 20.5% set to commence at the beginning of April 2022. The cash-strapped power utility made the application as part of its fifth multi-year price determination revenue application for the 2023 to 2025 financial years, which Nersa rejected in September last year.

The remaining two years’ application is still the subject of a court review application. The proposed price increases for the three years are 20.5%, 15% and 10% respectively. In its paper, Nersa asks stakeholders to take into account the fact that Eskom has conceded that there has been fraud and corruption. “Consequently, the allowed revenues must not be spent imprudently — in 2021 alone, more than R3-billion in procurement malfeasance has been exposed in the press.”said the metro rejects the proposed price hike, calling it “unfair, unaffordable and unjustified”.

Just as Nersa has been told to consider Eskom’s tariff hike, the high court will soon mull whether municipalities should be granted exclusive rights to distribute electricity. But when the distinction between non-municipal and municipal areas fell away in 1996, in some jurisdictions Eskom and the municipalities ended up distributing electricity simultaneously. In some of those areas, George said, Eskom is using municipal infrastructure to distribute electricity without paying for it.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 2. in ZA

South Africa Latest News, South Africa Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

BNP Paribas and Morgan Stanley brace for greater currency swingsA sea change awaits traders accustomed to near-united monetary largesse with low borrowing costs
Source: BDliveSA - 🏆 12. / 63 Read more »

As matrics brace for 2021 results, task team releases final report into 2020 leaked exam papers scandalWith days to go before the release of the 2021 matric results, an investigation launched into the leaked 2020 question papers has found that the reluctance of implicated pupils to surrender their cellphones compromised the investigation.
Source: SowetanLIVE - 🏆 13. / 63 Read more »

As matrics brace for 2021 results, task team releases final report into 2020 leaked exam papers scandalWith days to go before the release of the 2021 matric results, an investigation launched into the leaked 2020 question papers has found that the reluctance of implicated pupils to surrender their cellphones compromised the investigation.
Source: TimesLIVE - 🏆 28. / 59 Read more »

City of Cape Town rejects Eskom's 'unaffordable' electricity price hikeCape Town mayor Geordin Hill-Lewis has asked Eskom CEO André de Ruyter to formally withdraw the application.
Source: TheCitizen_News - 🏆 6. / 75 Read more »

Business grouping sides with Eskom against ‘municipal monopoly’Tariffs in Eskom distribution areas tend to be much lower than those supplied by local municipalities, which Salga says constitutes unlawful discrimination. Moneyweb
Source: Moneyweb - 🏆 5. / 77 Read more »