'It's out of our control': Eskom fights for 20.5% hike in April | Fin24

While the determination of Eskom tariffs is extraordinarily complicated at the best of times, this year’s application – which will put in place new tariffs on 1 April for non-municipal customers and 1 July for municipal customers – is even more complicated.Eskom says its 20.5% tariff request is due to costs of independent power producers and carbon taxes.Cape Town mayor Geordin Hill-Lewis urged Nersa to abandon its methodology in favour of a more rational approach.

Due to large increases in these and other areas, in its application Eskom requested a negative return on assets of 6.38%, to prevent the overall increase rising too high. While the determination of Eskom tariffs is extraordinarily complicated at the best of times, this year’s application – which will put in place new tariffs on 1 April for non-municipal customers and 1 July for municipal customers – is even more complicated. This is because the application was drawn up a year ago but had not been deliberated on by Nersa.

While the balance between the various factors contributing to the price application will change, the global amount of 20.5% is expected to remain the same.But while Eskom tried to justify its application, stakeholders and interested parties at the Nersa public hearings appealed to Nersa to ignore its methodology and refuse to award the increase on the basis that consumers could not afford them.

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