The power utility has approached the courts to review the National Energy Regulator of South Africa's decision to deduct a R69 billion bailout from Eskom's approved revenue for the current tariff period.
CAPE TOWN - Eskom on Tuesday said it must hike consumer tariffs to avert a complete financial meltdown.
The parastatal said this meant it would need steeper tariff hikes from the approved 8.1% this financial year to 16%. The energy regulator’s decision to classify government’s R69 billion bailout to Eskom as revenue means Eskom will get less from consumers.Eskom's Hasha Tlhotlhalemaje said that besides increased tariffs this year, it would also need more than the 5.2% hike approved for next year.
"And this 5.23% increase, which 2.2% is accounted for by independent power producers, leaves Eskom with a 3% nominal increase. Now any household, let alone Eskom, cannot function that way." She said Eskom remained well aware of the financial situation of consumers but stressed the company needed to be sustainable.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Eskom tariff war is back in courtEskom and Nersa will again cross swords over electricity tariffs in the Pretoria High Court today. Eskom will try to convince Judge Jody Kollapen to set aside Nersa’s decision allowing Eskom an increase in electricity tariffs of only 5.23% in 2018/19
Read more »
New Eskom boss cautions against rushing unbundling | IOL Business ReportEskom's new chief executive said on Sunday that a plan to split the loss-making power utility should not be rushed. busrep
Read more »
New CEO André de Ruyter to put brakes on Eskom unbundlingEskom’s new group CEO, André de Ruyter, wants to slam the brakes on the process of unbundling Eskom.
Read more »
Fixing Eskom: A chance to kickstart the mining industry and the economyGovernment has identified the challenges it faces and it has put in place a plan to turn Eskom around. There are some encouraging signs, but it remains to be seen whether government has the political will to push through with reforms, writes Owen Murphy
Read more »
Eskom looks to private powerNew CEO De Ruyter says renewables 'a good thing'
Read more »
Eskom leaves Soweto homes in the darkResidents of Orlando East, Soweto, have accused Eskom of victimising them by cutting off power after technicians were chased away from the area while attending a technical problem.
Read more »