Kaya News Reporter
The National Energy Regulator of SA (Nersa) has approved a 9.61% electricity tariff increase for 2022/23.
Nersa said the approved tariff increase is what is best for the economy, consumers and Eskom.
Eskom initially proposed a staggering 20.5% increase in order to be able to sustain power supply to the country.
The proposal was rejected by City of Joburg Executive Mayor Mpho Phalatse.
Phalatse lodged a formal objection earlier this month at the start of the Nersa hearings on the tariff proposals.
The mayor rejected Eskom’s proposed hike because consumers are already burdened by an underperforming economy.
“We do believe that a lot of the costs in Eskom’s proposed tariff hike are overstated. We have given submissions where we think they [Eskom] can cut them down, and we hope that we will get a favourable response from the regulator.” Executive Mayor Mpho Phalatse.
While the DA welcomed the “reasonable” increase, the EFF called the increase an “anti-poor” decision.
“The increase which is lower than the ridiculous request by Eskom which was 20.5% is by no means a reprieve. It means that low-income, black households will struggle to make ends meet, and small businesses which are still reeling from the Covid-19 pandemic will suffer,” the EFF said in a statement.
EFF Rejects NERSA’s Approval of 9.61% Electricity Hike pic.twitter.com/wX2CtNdd8Q
— Economic Freedom Fighters (@EFFSouthAfrica) February 24, 2022
The electricity tariff increase will come into effect on 1 April for Eskom customers and 1 July for municipal customers.
Nersa advised that the 9.61% increase is only an estimated one and the final price hike has to still be finalised.
Municipalities may also add a surcharge.
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