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More pain ahead as Nersa grants Eskom 9.4% increase for 2019/20

Nersa says it is aiming to balance the interests of Eskom and the public.

South Africa‘s energy regulator Nersa on Thursday granted struggling state power firm Eskom average power price increases that were far below what the utility had asked for, saying it aimed to balance the interests of the company and the public.

Nersa decides every few years how much revenue cash-strapped Eskom is allowed to earn from its customers via electricity tariffs, based on forecasts of its power sales and costs.

Nersa said Eskom could hike tariffs by 9.41% in the 2019/20 financial year, 8.10% in 2020/21 and 5.22% in 2021/22.

Those tariff increases do not include previous awards Nersa gave Eskom last year, for costs incurred over 2014/15, 2015/16 and 2016/17, which will be recovered over a four-year period.

Eskom wanted power price increases of 17.1%, 15.4% and 15.5% over the next three years in its latest multi-year price determination application submitted last year.

On Thursday Nersa also allowed Eskom to recover R3.869 billion ($270 million) from its customers for electricity supplied in the 2017/18 financial year, significantly below the R21.6 billion that Eskom had applied for.

Nersa typically awards Eskom less than it asks for, as it only allows the company to recover costs which it deems prudently incurred.

Eskom supplies more than 90% of the power in Africa‘s most industrialised economy. But it is grappling with breakdowns at its creaking coal-fired power station fleet which forced it to implement some of the worst power outages in several years last month.

The government has promised to inject R23 billion a year into Eskom over the next three years to help the utility meet repayments on its R420 billion debt burden.

Dollar-denominated bonds issued by Eskom rallied on Thursday after Nersa granted the utility an increase in tariffs.

The 2028 issue jumped 2.5 cents to 108 cents in the dollar while the 2025 bond added 1.4 cents to trade at 101.25 cents, according to data from Refinitiv.

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When are Eskom going to go after those people who constantly steal electricity.
Very soon this government will have no taxpayers from which they can steal funds for their extravagant lifestyles

Let’s hear there recovery process to claw back the billions stolen by municipalities and individuals before upping the ante with those who do pay or get cut off if barely days overdue….phhht!

Nothing but more indirect taxation and looting recovery by stealth… maybe the anc marxists will eventually wake up when no one can pay for anything in this ideologically sick country with it’s entrenched majority “gimme” attitude”!

Typical cANCer management style on the delivery side. Pay more for deteriorating product service delivery.

Typical cANCer management style on the receiving side of local municipalities………..who cares for the greater cost of electricity that is not paid in any case.

This is exploitation of ordinary citizens, plain and simple. When is enough-enough?

Luthuli house is the head of this fatal parasitic Eskom monster that sucks the life out of businesses and the spending power out of households via the cables into every building that act as tentacles of looting. We have to sever its head in order to save the emaciated economy and the suffering consumers.

We will just have to use less electricity then?
10% less?

Oh cool, so they’ll also be reducing indigent persons free electricity quotas by 9,41% this year.

Eskom should not be a in the business of granting credit. All electricity should be sold on ‘pay as you go’ whoever the customer is. Government buildings, foreign countries, municipalities, Soweto residents just everyone. Any receivables on the balance sheet should be sold of to anyone with the time and guts to recover on them. Might only get a few cents in the rand but at least release some funds for this organisation.

This article is fake news . if one reads engineering news one can get the truth.
the increases for the next 3 calender years
range from 15% to 17,1% which when compounded means in 4 years time our electricity will have DOUBLED.
with the track record of anc/ nersa/ escom
which is all the same commie/oligarch and
the fact that soweto and alex will never pay up us haves will soon become havenots ,
other than the oligarchs , naturally.

I said to my wife yesterday after the announcement that today we would go to stage 3.
News 24 has just announced that we must expect load shedding at short notice.
Being spiteful are we, blackmailing us because that did not get enough of an increase.
Easily fixed. halve the wage bill and you will save 13 billion a year.

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