Eskom proposes tariff increase of 19.9%

Spokesperson Khulu Phasiwe says a draft proposal has been sent to the South African Local Government Association (SALGA) and National Treasury for comment.

“In terms of the law, whenever Eskom proposes to increase the tariff, we need to give SALGA and National Treasury at least 40 days to make comments. We have sent letters to both and we will wait for their response before we can sent it to the energy regulator.”

Phasiwe says the tariff increase proposal might be revised before a final proposal is sent to the National Energy Regulator of South Africa (NERSA) for approval.

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“This 19.9% proposed increase is a draft and not the final presentation that we will present to the regulator. Based on the input we will receive from SALGA and Treasury, we might revise it. At this stage this is just a draft and not the final application,” he says.

In 2016 Nersa rejected Eskom’s 16.6% tariff increase request for the 2016/17 financial year and only granted a 9.4% tariff hike, stressing the burden 16.6% would have on consumers.