Eskom says dire consequences if not granted tariff hike

Eskom says if the court doesn’t grant it the tariff hike it wants there will be dire consequences for both the country and customers. The power utility is challenging the energy regulator's decision to grant it a lower tariff increase. Courtesy #DStv403

JOHANNESBURG - Eskom says if the court doesn’t grant it the tariff hike it wants there will be dire consequences for both the country and customers.

The power utility is challenging the energy regulator's decision to grant it a lower tariff increase.

Eskom is now asking the court for even more than it initially requested.

READ: Eskom, Nersa to battle it out in court

Two years ago, Eskom applied for what amounted to electricity tariff hikes of 15-percent a year over three years. 

But the energy regulator, National Energy Regulator of South Africa (Nersa) pointed out that the power utility had already received R23-billion as part of a government bailout.

Nersa only awarded Eskom an 8.1-percent increase, saying the parastatal would otherwise make too much money at the expense of consumers and taxpayers. 

READ: The president was misled about load-shedding, says Mabuza

“When people think of Eskom they think of Guptas, they think of corruption, they think of state capture killing this country and we’re not saying that state capture was not a massive issue but forget state capture lets look at what reasonable electricity tariffs would be, where Parliament has decreed that electricity tariffs must finance electricity provision,” Advocate Matthew Chaskalson, representing Eskom.

Judgment in the matter has been reserved.

It's probably one of the most irritating things we have to deal with. At the centre of the continuous incompetence to keep the lights on - Eskom. Yet the utility still wants you to pay more for electricity. In fact, it has taken the energy regulator to court, arguing Nersa's previous decision on tariff increases was irrational. It's pretty complicated, so our reporter, Dimakatso Leshoro, broke it down for us. Courtesy #DStv403

Source
eNCA