South Africa’s energy regulator has granted state entity Eskom an approval of a 2.2% tariff increase for 2017/18 financial year — much less than in the past two financial years.
This will mean Eskom gets over R205 billion more for the this years budget which will come into effect on 01 April.
This amount will cover the parastatal’s costs plus a return to the value of R33 667 billion as per the multi-year price determination (MYPD3).
In addition to this‚ R23 billion of the R205 billion is earmarked for Independent Power Producers.
The energy regulator had previously approved an 8% average increase per annum for a period of five years‚ starting from the 1st of April 2013 to the 31st of March 2018.
“The reason for the lower percentage increase is due to the base adjustments made in the preceding years as a result of the approved Regulatory Clearing Account (RCA) balances for Eskom‚” said Jacob Modise.
In the 2015/2016 period‚ Nersa approved a 12.7% increase and a 9.4% increase for the 2016/2017 period instead of 8%.
Eskom only gets 2‚2% tariff increase
This will mean Eskom gets over R205 billion more for the this years budget which will come into effect on 01 April.
This amount will cover the parastatal’s costs plus a return to the value of R33 667 billion as per the multi-year price determination (MYPD3).
In addition to this‚ R23 billion of the R205 billion is earmarked for Independent Power Producers.
The energy regulator had previously approved an 8% average increase per annum for a period of five years‚ starting from the 1st of April 2013 to the 31st of March 2018.
“The reason for the lower percentage increase is due to the base adjustments made in the preceding years as a result of the approved Regulatory Clearing Account (RCA) balances for Eskom‚” said Jacob Modise.
In the 2015/2016 period‚ Nersa approved a 12.7% increase and a 9.4% increase for the 2016/2017 period instead of 8%.
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