Nersa announcement 'good news for consumers'
The National Energy Regulator (Nersa) says as things currently stand, Eskom will be allowed to increase tariffs by 2.2 percent.
Nersa chairperson Jacob Modise explained the power utility will be allowed to collect revenue of just over R205 billion in the coming financial year.
Modise says today's announcement is good news for under-pressure consumers, considering the increases of 9.4 percent and 12.7 percent over the last two years.
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"Consumers will be getting the benefit of excess capacity, a lower tariff environment and the average increase in municipal tariffs will be much, much lower this year," says Modise.
He has, however, warned that the figure is not a done deal.
"Rather than raise people's hopes, a lot depends on whether Eskom does come back and make another application based on financial distress or something of that nature. But it should be good news to the consumer, if Eskom does not do so," says Modise.