Recently, South African power utility Eskom formally submitted a proposal to the National Energy Regulatory Authority of South Africa (NERSA), planning to significantly increase electricity tariffs over the next three years, with tariffs for its direct customers rising by 36% in 2025, followed by a further 12% and 9% in 2027 and 2028 respectively.
In April this year, Eskom had just carried out a nearly 13% increase in electricity tariffs, and this time the proposal was even more widely disputed.
According to documents released by the National Energy Regulatory Authority of South Africa (NERSA), Eskom expects revenues to reach R446bn by FY2026, R495bn by 2027, and even more R537bn by 2028. Energy costs, operating expenses, the involvement of independent power suppliers and equipment depreciation are the main drivers of this tariff increase.
There have been disagreements between NERSA and Eskom over tariff intentions and the revenue that should be generated from charging customers for electricity. This has resulted in Eskom tariffs approved by the regulator often being significantly lower than the utility's expectations.
The public comment period has been officially launched with a deadline of November 1, 2024. NERSA will make a decision after receiving all the feedback and plans to announce a final decision in March of next year.
Source: https://mp.weixin.qq.com/s/ipcUX7TCKN1wD3cRwfO24Q