Photo by: Duane Daws
The National Energy Regulator of South Africa (Nersa) confirmed on Monday that it would announce its decision on Eskom’s 2018/19 revenue application on December 13, instead of the December 7 date initially set for the determination.
“The date has been changed due to more time being required to conduct a thorough analysis of Eskom’s application and to take stakeholders’ input received during public hearings and from written submissions into consideration,” Nersa said in a statement.
The regulator received a record 23 000 written submission after Eskom applied for an allowable revenue of R219.5-billion for the financial year. That increase, together with a rebasing for lower sales volumes, would translate into a tariff hike of 19.9%.
At the conclusion of public hearings, which took place in most of South Africa nine provinces in October and November, Eskom lowered its allowable revenue request to R212.8-billion. However, it also decreased its standard-tariff sales forecast, which would translate into an average hike of 18.9% from April 1 and municipal increases of 26.9% from July 1.
Participants in the public hearings roundly rejected Eskom’s application and called on Nersa to cap any increase to the rate of inflation.
They also called on the State-owned utility to prove that it was taking more aggressive steps to cut costs and address both wasteful expenditure and corruption.