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  • Dale Rouessart

Finally a bit of Good News... even though it's a little... We will take it !

Eskom granted 9.61% tariff rise, less than half sought

South Africa's energy regulator Nersa said on Thursday that it had granted struggling state power utility Eskom an overall average tariff increase for the 2022/23 financial year of 9.61%, versus the 20.50% increase Eskom had applied for.

Nersa rarely allows Eskom the full amount it applies for, with disputes between the two often ending up in the courts.

Eskom argues that Nersa has not allowed it to recoup sufficient revenue via electricity tariffs over many years and says that is one of the reasons why it is dependent on government bailouts.

Eskom might challenge electricity increase to get more

There are concerns that Eskom might challenge the National Energy Regulator of South Africa’s (Nersa) decision to grant them a lower electricity tariff than what they requested. The power utility on Thursday was granted an average standard tariff increase of 9.61% instead of the 20.5% Eskom had requested in its 2022/2023 revenue application.

Although the increase is less than what the power utility had requested, it is still 4,1 percentage points higher than inflation.

The tariff goes up on April 1 for Eskom customers, and July 1 for municipal customers. Municipalities will also likely add a surcharge for their customers.

South Africans should prepare for a double-whammy energy price shock over the next few months with electricity tariffs now confirmed to rise 9.61% from April 1 while petrol and diesel prices are predicted to go up dramatically due to Russia’s invasion of Ukraine.

Eskom is also trying to tariff the Solar Users specifically by tabling a tariff designed to make it more expensive to use electricity if you are utilising the power of the Sun. Eskom always seems to have a trick up their sleeve to try and get as much as possible from us, while constantly making it as difficult as possible for us to try stay ahead of the curve.

This is why it is vitally important to do the following:

  • Measure your utility consumption with a Smart Meter that registers demand and TOU tariffs so that you can make sure that what you are being charged is correct.

  • Monitor the usages, trends and irregularities so that you are in control and well informed that your utilities are recovered, that no expenses go unnoticed.

  • Audit the accounts on a monthly basis. This can be quite an exercise and take up a lot of your precious time. Let us do it for you.

Here are some noteworthy achievements:

  • Utility Managed Services: 1993 – Present

  • Municipal In-house Experience: Over 100 years combined

  • Current In-house Utility Experience: Over 100 years combined

  • Account Issues Resolved Over 2,000

  • Client Savings to Date: Over R 400 million

  • Sites in our Current Portfolio: Over 65 sites and increasing every month

Our solutions are holistic and include:

  • Electrical Engineering Design and Project Management

  • Utility Management

  • Primary Distribution

  • Check Metering / Automated Meter Reading

  • Account Audit

We are experts in Commercial, Retail and Industrial Property. Utility Management is our passion. Business Parks, Industrial Parks, Shopping Centres, Factories and more, we do it all.

Let one of our Friendly Consultants have a look at your utility accounts. We can check everything. Our years of experience and dynamic approach will give your Company the edge.

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