Eskom proposes 15% tariff increase
Eskom has asked the National Energy Regulator of South
Africa (Nersa) for a 15% tariff increase, each
year, for the next 3 years.
The power utility’s spokesperson Khulu Phasiwe says, should the application be successful, it would be added to the 4.41% that has already been granted - making the total increase close to 20%
Phasiwe says Eskom's tariffs are generally not cost reflective and if the energy supplier is to make a profit, there needs to be an adjustment.
"This year alone we got 5.3%, last year it was 2%. All these tariffs are less than inflation so clearly if we are going to adjust our prices accordingly there needs to be an adjustment.”
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Phasiwe says affordability of the prices to the poor and the impact it could have on the country's economy have been taken into consideration.
He says both National Treasury and international credit rating agencies have said in the past that Eskom’s tariffs need to be adjusted.
"All of them have actually been saying that Eskom's tariffs are not where they should be, they need to be adjusted or revised upwards," Phasiwe adds.
Phasiwe says the proposed hikes have nothing to do with the allegations of maladministration and corruption that have plagued the cash-strapped entity.