Eskom confirms tariff application, says necessary for financial sustainability
Eskom should achieve financial sustainability in seven years, but that was conditional on the National Energy Regulator of South Africa (Nersa) agreeing to tariff increases of some 20%, the utility’s chief financial officer said on Wednesday.
“We believe we should be able to navigate Eskom to the point where it is financially sustainable. It should happen in the next seven odd years but that will depend on the tariff increases,” Anoj Singh told a select parliamentary committee on communications and public enterprises.
Singh did not dispute leaked reports that Eskom has applied to Nersa for tariff increases of 19.9% for private consumers and 27.3% for bulk buying municipalities from July 2018.
He qualified it by pointing out that Eskom did not know at this stage what percentage Nersa would approve.
On the sidelines of the briefing, he said the tariff application had in part been determined by the fact that price hikes over the past five years had been premised on increased demand and consumption which did not materialise.
It meant that Eskom did not earn the revenue it had expected. The company expected demand to increase somewhat over the medium term but wanted the new increases to be informed by the fact that it had missed out on revenue in the previous cycle because demand flattened.
The tariff increase for the current financial year was 2.2%.
Article Enquiry
Email Article
Save Article
Feedback
To advertise email advertising@creamermedia.co.za or click here
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
The Steel Tube Export Association of South Africa was established to develop sustainable, internationally competitive carbon steel tube and pipe...
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
