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Eskom to recover R32.7bn of electricity costs

Eskom is able to raise power prices by at least 4.4% from April 1 to claw back the expenses through its regulatory clearing account.
Standard tariff customers will pay for R31.1 billion of expenses incurred. Picture: Dean Hutton, Bloomberg

South Africa’s standard electricity users will bear the brunt of the R32.7 billion the state-owned power utility can recover in unbudgeted costs incurred in the 2014 to 2017 financial years, the energy regulator said.

Eskom is able to raise power prices by at least 4.4% starting April 1 to claw back the expenses through its so-called regulatory clearing account, the Pretoria-based National Energy Regulator of South Africa said in an emailed statement Tuesday. It first announced the amount on June 14, and today said standard tariff customers will pay for R31.1 billion of that, with international clients and those on negotiated pricing agreements footing the bill for the rest.

The regulator gave Eskom permission to raise prices by 5.2% from April 1, far short of the almost 20% Eskom had applied for. The power utility implemented rolling blackouts in June for the first time since 2015 after protesters blockaded roads and attacked staff when wage negotiations broke down.

© 2018 Bloomberg L.P

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4th year off grid. Suck it up suckers!

Add “….and excessive staff wage increases” to the last paragraph of the article

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