NEWSFLASH Eskom proposed electricity cost hike for 2019

Eskom recently announced that it has asked the National Energy Regulator (NERSA) for a 15% tariff increase for the next three years, beginning 2019-2020.

Eskom has also been granted approval to claw back an additional R8bn from customers as a result of the adjudication of the regulatory clearing account (RCA) for periods stretching from 2014 to 2017. The RCA compares assumed costs and revenues applied in yearly price determinations with actual costs and revenues in order to determine if there was a shortfall, which can then be recovered.

If Eskom's suggested increase is approved, tariffs in 2019-2020 will rise 15%, plus the 4.4% allowed for by the RCA.

NERSA will hold public hearings on these tariff amendments in January 2019. For further details regarding the applications, the submissions process and public hearing details, visit the NERSA website at www.nersa.org.za.