JOHANNESBURG - South Africans will be paying more for electricity from 1 April as Eskom’s approved 12.74 percent tariff increase takes effect.
But this will not be the final blow to consumers’ pockets.
Municipalities across the country are applying for additional price hikes to cover the cost of distributing power.
As a result, electricity bills are being pushed even higher.
Eskom’s tariff adjustments, approved by the National Energy Regulator of South Africa (Nersa), come amid rising concerns over the affordability of electricity.
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According to Nersa Head of Electricity Pricing, Brian Sechothlo, this is a culmination of processes which have been embarked on as far as last year.
After the approval of the 12.74 percent tarrif hike, Eskom was tasked to submit a retail tariff plan which allocates the average price to various customers.
“With this particular retail tarrif, we have two types of customers including those customers supplied directly by Eskom and we have municipalities that are buying from Eskom.
“The price of 11.32 percent is what Eskom will be charging municipalities who will then embark on their own process and bring to Nersa their applications based on the cost of supplies,” he said.
Noting that often at times affordability, economy and Eskom revenue are in conflict with each other when determining tariffs, Sechothlo says they try to find balance.
“We need to consider that we have a surviving Eskom that is sustainable and able to supply electricity but we need to be able to consider affordability and impact on the economy,”