ENERGY regulator Nersa has approved an 18.65% increase in electricity prices for 2023 – and a 12.74% hike for next year.
The regulator’s decision relates to the fifth Multi-Year Price Determination (MYPD) for Eskom for year two (2023/24) and year three (2024/25).
The approved increase is lower than what Eskom had applied for but is still significant, and far higher than inflation.
In September 2022, Eskom applied for a 32% price hike for 2023/24, and a 10% hike in 2024/25, equating to a recovery of R351 billion and R381 billion, respectively.
Nersa is allowing Eskom to recover R318 billion for 2023/24 and R352 billion for 2024/25.
According to Nersa the decision was taken against the backdrop of tough economic circumstances, including high interest rates, low growth, high unemployment and load shedding.
In determining the hikes, it tried to balance these various factors as well as Eskom’s service needs, it said.
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