Eskom about to put the screws on consumers’ pockets via TheCitizen_News
Eskom looks set to increase electricity prices significantly over the next three years . Image: Shutterstock
Nersa had deducted the R69 billion equity injection given to it by the government in its allowable revenue method for the 2019/20, 2020/21 and 2021/22 financial years. Government had made this equity injection to help Eskom service its high debt. “At the moment, the average price of electricity is much lower than what it costs to efficiently produce… This decision allows for the narrowing of this gap,” Eskom spokesperson Sinkonathi Mantshantsha explained.
In a statement released after the judgment, Nersa said it would advise on the way forward in due course, but opined: “The judgment, if left uncontested, will not only disrupt the industry, but will further suppress economic recovery, considering the current threat that the country’s economy is facing.
Despite this, decisions were made last year by Mineral Resources and Energy minister Gwede Mantashe and Nersa to add a further 1,500 MW of new coal capacity to the country’s energy ‘mix’.“South Africa is not doing itself any favours by making pro-fossil fuels decisions. This is not the time to be building new coal plants. We need to look at saving money and costs. From a cost perspective, it doesn’t make sense,” Loser explained.
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