Nersa said the plan and timelines for processing Eskom’s application will be communicated after its pronouncement on the application’s compliance. Picture: Armand Hough/Independent Newspapers
Eskom has filed a revenue application for the next three financial years.
But the utility has yet to disclose the increases it proposes for the period.
A number of organisations have threatened legal action against Eskom’s 40% tariff hike in its revenue application for the 2025/26 financial year while political parties have called for a Parliamentary debate about the escalating costs of electricity tariffs.
The National Energy Regulator of South Africa (Nersa) yesterday confirmed that it had received the Eskom Sixth Multi-Year Price Determination (MYPD6) revenue application for the 2025/26, 2026/27 and 2027/28 financial years.
Nersa confirmed it received Eskom's application on August 16.
Nersa’s spokesperson, Charles Hlebela, said Eskom’s application would be processed following all required procedures, which included assessment for regulatory compliance.
“If the application is considered compliant, it will be processed in terms of the prescripts of the National Energy Regulator Act, 2004 (Act No. 40 of 2004). In this regard, the application will be published for stakeholder comments and public consultation, which emphasises both transparency and public participation,” Hlebela said.
“Stakeholders are encouraged to use this opportunity to submit their views and present relevant facts and evidence to the Energy Regulator.”
However, Hlebela could not disclose the tariff percentages or the amounts for which Eskom wished to recoup through this process after Nersa approved a lower rate of 12.72% for the 2023/24 financial year compared to 15.1% a year ago.
“The amounts or percentages applied for will be communicated after the Energy Regulator’s pronouncement on the application’s compliance,” he said.
Nersa is obliged by the Electricity Regulation Act to properly consider Eskom’s application in terms of the laws, policies, regulations, rules and methodologies governing the electricity sector.
Nersa said the plan and timelines for processing Eskom’s application would be communicated after its pronouncement on the application’s compliance.
It said it was committed to ensuring that all regulatory processes, including public participation, were conducted with the utmost transparency, fairness and inclusivity.
South Africans have been burdened with exorbitant electricity costs while enduring rolling blackouts and unreliable supply for a number of years.
Conservative estimates point out that between 2007 and 2022, Nersa-approved Eskom tariffs went up by 653% while inflation went up by 129%.
Business chambers in parts of the country have warned that a proposed 36% electricity price increase next year would be “absolutely devastating” and could see many enterprises close down.
The National Association of Social Housing (Nasho) has urged the government to consider alternatives for the social housing sector regarding the possible 40% electricity price increase.
Karabelo Pooe, general manager of Nasho, said they were concerned that a large number of social housing tenants who should be eligible for indigent status would be unable to afford the looming electricity price increase without indigent benefits, putting them at risk of financial hardship.
“Currently, social housing tenants are not cushioned from the high cost of municipal services, including the exorbitant price of electricity in any way,” Pooe said.
“This is despite the fact that around 35-40% of social housing tenants earn below R6 700 per month, and therefore should qualify as indigent. However, because they rent their homes through an 'institutional landlord', they are not able to apply for indigent benefits. This means that although they are in effect indigent, they are expected to fund their living costs without the safety net of indigent subsidies.”
Meanwhile the DA said it had started a petition against high electricity tariffs due to their severity on consumers.
DA spokesperson Kevin Mileham said it was simply unacceptable that consumers have contiued to shoulder this financial burden.
“The DA will bring our call for a review of electricity tariffs on the Parliament floor after the Speaker of the National Assembly, Thoko Didiza, granted our request for a Debate of Urgent Public Importance on the matter.
“This crucial debate is scheduled to take place on Tuesday 3 September 2024. We will continue to fight against unjustified tariff hikes and work towards a more transparent and consumer-focused regulatory environment.”
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