Only a few hours before the court-ordered deadline, energy regulator Nersa on Thursday made the “very difficult” decision to grant Eskom a tariff increase of 18,65 percent for 2023/24 and 12,74 percent the following year.
This, however, comes with non-negotiable conditions that will become part of Eskom’s licence conditions.
Whether the regulator will be able to enforce the conditions remains to be seen.
Those who buy electricity directly from Eskom will pay more from April 1 next year and those who get their electricity from municipal distributors from July 1.
The increase comes against the backdrop of Stage 6 load shedding “until further notice”, leaving South Africans in the dark for up to 10 hours a day.
It is a further setback for consumers who are battling with tight budgets, high fuel prices, increases in interest rates and inflation. Businesses are suffering loss of production and huge additional expenses due to load shedding, and indications are that many small businesses may be forced to close.
Jannie Strydom, CEO of Agri Western Cape, said in a statement although the increase is lower than the 32 percent requested by Eskom, 18,65 percent is intolerable.
“This is a drastic increase in tariffs for electricity supply that is already extremely unreliable. Consumers therefore pay more for less power. The energy needs of farming operations remain the same irrespective of the electricity tariff. Producers are now forced to invest in alternative sources of electricity, which requires enormous capital,” says Strydom.
“Food security cannot rest solely on the shoulders of producers. Food production is currently under immense pressure. — Moneyweb.
