The National Energy Regulator of South Africa (Nersa) announced that it supports the government’s proposals that future electricity tariff increases must be centered on inflation signifying the conflict in the current power pricing model.
Eskom was rumored to have asked Nersa to increase tariffs by 14.6% over the next five years, and the new proposal could indicate that the utility’s requested increase could be denied. David Ross, shadow deputy of the Minister of Energy, issued a release saying, “We also call on the Department of Energy to formulate an inflation-linked, multi-year price determination policy to replace the current pricing model.”
He continued: “Making consumers pay for Eskom's legacy of poor generation planning is unethical at best and economically senseless at worst. South Africans have been subjected to 24.8%, 25.3% and 16.09% over the last three years. In an economic environment already subject to high inflation, the added cost burden would be unaffordable and fundamentally destructive to economic growth.”
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