Hearings into Eskom price hike start today
The National Energy Regulator of South Africa’s public hearings into Eskom’s application into a price hike are expected to get underway in Cape Town today.
According to a statement by the power utility, they applied for the price hike for revenue that will allow Eskom to cover operating costs and earn a reasonable return.
Electicity tariffs could rise by as much as 16%, should Eskom's application be granted.
"This allowed revenue however is calculated on the basis of a forecast," the statement read.
The Statement:
"Investors are seeking certainty and stability from the regulatory process. Eskom has recently been downgraded by Rating Agencies and they note inadequate tariff increases as part of the reason for the downgrade."
"Funding security ensures that the build programme remains on course for completion. Sufficient revenue allows Eskom to continue with the generation performance improvement programme to the benefit of all customers. A financially sustainable Eskom will support our country’s broader economic objectives."
The public hearings will go around the country until the 5th of February where they will come to a close in Midrand, Gauteng.
Meanwhile Eskom said that the power grid was stable with no interruptions expected.