Eskom’s industrial and mining customers face 9.6% tariff increase from April
State-owned power utility Eskom has published a breakdown of the impact of the 2013/14 tariff increases for its various customer categories, which indicates that large industrial and mining customers will face increases of 9.6% from April 1.
The utility, which sought five yearly increases of 16% for the period covering April 1, 2013, through to March 31, 2018, was granted average increases of only 8% a year on February 28 by the National Energy Regulator of South Africa (Nersa).
However in its determination, Nersa stipulated that poor residential consumers should be protected from the increases, insisting, for instance, that increases to Homelight 20A customers, who consume up to 350kWh a month, be limited to 5.6%.
The increase for Homelight 20A customers, who consume more than 350kWh, were also limited to 7.6%, while tariffs for higher-consuming residential customers could increase by the 8% average.
The increase granted to Eskom permit it to recover R135.2-billion from sales of 206 412 GWh during 2013/14.
Therefore, the fact that some customer categories were not exposed to the full 8% increase means that other customers would be required to subsidise the balance.
The utility states that effective increase for ‘urban (non-local authority) customers, which is Eskom terminology for direct industrial and mining customers, would be 9.6%. Tariffs for ‘rural (non-local authority customers) would rise by 9.3%.
Urban local authority tariffs, meanwhile, were poised to rise by 7.1%, while rural local authority tariffs would increase by 12%.
The tariff increases would be implemented on April 1 for Eskom’s residential, commercial and industrial customers and from July 1 for municipal customers.
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