After failing to make a call on a potential hike for electricity tariffs back in December, Nersa (the National Energy Regulator of South Africa) has finally approved a 33.77% increase. Don’t panic just yet – the increase is spread out over the next two years. The first is an 18.65% increase set to hit bills this April.
We now return you to your regularly scheduled panicking
Despite the huge increase, it’s still far below what Eskom was initially asking for. The power provider had originally requested for a 32% increase for this year alone. We can only assume that Nersa laughed in Eskom’s face before finally coming to a compromise.
Mark it down in your diaries – 1 April 2023 is when the first 18.65% increase hits. This equates to a tariff of 173.8c/kWh. A year later, on 1 April 2024, the tariff is rising to 195.95c/kWh – a 12.74% percent increase for that year.
Read More: Eskom CEO quits: why finding a new head for South Africa’s struggling power utility won’t end the blackouts
Yes, it’s lower than Eskom asked for in December. Yet, it still far exceeds the current consumer inflation rate, meaning we’re going to suffer just a bit more over the coming year. If only the extra money translated to less load shedding, it might be worth the extra spend. But don’t worry, readers: “Eskom again apologises for the severe extent of load shedding.” Now that’s a load off.
The country is currently trapped in the clutches of Stage 6 load shedding, with no real end in sight. We can only hope that Eskom spends its extra funds wisely – with its first purchase hopefully being as much diesel as it can possibly store.
Source: TechCentral