Eskom’s tariff increase for 2022/23 will be 9.61%, the National Energy Regulator of SA (Nersa) announced on Thursday.
The tariff increase is made of 3.49% for the 2022/23 year as well as legacy decisions from previous years, which brings it to 9.61%.
Eskom had asked for 20.5% increase, including the previous allowable revenue.
Nersa warned that the prices are “indicative”, as the actual price must still be finalised.
The tariff goes up on 1 April for Eskom customers and 1 July for municipal customers. Municipalities will also likely add a surcharge for their customers.
Eskom had previously its proposed 20.5% tariff increase for 2022/23 on Monday, arguing that most of the cost increase was driven by two factors outside of its control: the requirement to increase purchases of energy from independent power producers and the increase in carbon taxes.
This year’s application was drawn up a year ago but had previously not been deliberated on by Nersa.
In September, well after the application had been completed, Nersa informed Eskom that it intended to change the methodology for determining allowable revenue, requiring a new application.
In December, Eskom approached a court and secured an order that Nersa consider the 2022/23 application immediately to put new tariffs in place by 1 April.
Eskom noted the announcement, stating that the timeous determination will allow it to apply the adjusted price to customers.
Calib Cassim, Eskom’s chief financial officer, said: “The financial implications of this decision on Eskom’s long-term sustainability will need to be further understood. It is understood that Nersa considered the impact on consumers and the financial sustainability of Eskom as it made its decision”.
Cassim said the Eskom board would “deliberate further” before deciding on how to “continue to sustainably provide electricity to the extent possible in the context of this revenue decision”.