By Kouthar Sambo
The power utility Eskom approached the regulator National Energy Regulator of South Africa (NERSA) for an application amounting to R446 billion for the 2025/26 financial year. This is a 36% tariff increase which far exceeds inflation in our industrialized economy. NERSA’s decision on Eskom’s proposed tariff increase will be made on 20 December.
According to early reports, this process will be followed by public hearings across nine provinces from 18 November until 4 December before NERSA makes its decision.
However, the move comes as South Africans grapple with rising costs in various sectors. Speaking on VOC’s PM Drive show on Thursday, energy analyst Mark Swilling said NERSA evaluates what South Africans can afford and what Eskom requires to run as a viable business. He added those two factors do not align.
“When you have a single supplier of electricity, Eskom, that buys electricity from independent power producers, solar and wind, and it buys coal to convert into energy, all of that costs money.”
“There are two ways to cover these costs: (1) Tariffs you and I pay from the electricity we get from Eskom or the municipality, or (2) the taxpayer. Those are the only two sources that can keep Eskom afloat,” reiterated Swilling.
*Feel free to listen further as he delves into discussion on this matter.
Photo: Pixabay
