THE affordability of the 32% tariff hike being sought by Eskom for implementation on April 1 next year came under intense scrutiny on the last day of National Energy Regulator of South Africa (Nersa) public hearings.
The regulator, which adjudicated the first year of the three-year fifth multiyear price determination (MYPD5) in January, when it approved a 9.61% increase for the 2023 financial year against an Eskom request for 20.5%, expects to decide for the 2024 and 2025 financial years by November 7.
The utility has applied for allowable revenue of R351-billion for 2024 and R382-billion for 2025, inclusive of the R15-billion a year arising from a court order stipulating that the utility be allowed to recover, over five financial years, the full R69-billion equity injection Nersa incorrectly deducted from its MYPD4 allowable revenue.
If granted, the standard Eskom tariff would rise to 172.6c/kWh on April 1, or by more than 32%.
Eskom argues that even after such a steep
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