CONSUMERS WAIT FOR NERSA'S DECISION ON THE ESKOM PRICE HIKE APPLICATION

If Eskom gets its way, households and businesses may face increased energy bills beginning in April.

South African consumers await the National Energy Regulator of South Africa’s (Nersa) decision on Eskom’s revenue proposal with bated breath.

If Eskom gets its way, households and businesses may face increased energy rates.

The electricity company proposes a 32% rate increase in fiscal year 2023/24, followed by another 9% increase in fiscal year 2024/25.

The time set by the court for Nersa to rule on the case expired on Wednesday.

The Johannesburg High Court ordered Nersa to make a decision on Eskom’s multi-year pricing determination revenue application by Christmas Eve last year.

After members of Nersa’s power committee raised concerns, the high court extended the deadline.

If Eskom’s fifth revenue application is approved, the 32% rate increase will take effect in early April.

Chris Yelland, an energy specialist, forecast difficult days ahead.

“If you put up the price, it becomes less affordable. It means that more people can’t pay, it means more theft, and more arrear debt by municipalities.”

Nersa may potentially choose to approve only part of the power utility’s proposal.

This was done in April of last year, when power bills climbed by over 10%, despite the requested 20% rise.