Economist Mike Schussler has warned that electricity prices could increase by around 25% at the beginning of the next financial year, should Eskom’s bid for another tariff hike be granted.
The National Energy Regulator of South Africa (Nersa) is currently considering another tariff hike application by Eskom to recoup the R38 billion it incurred in costs in 2014.
“If approved, the outcome of this application is expected to impact the electricity price commencing in 2016-17,” said Eskom acting chairman, Ben Ngubane.
In June this year, Nersa rejected a request by Eskom to raise prices for the year to March 2016.
According to Schussler, electricity prices in South Africa have almost quadrupled since 2007, when the country first had power shortages.
Expect a power tariff hike of 25% - if Eskom bid is granted
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