Eskom has been approved an average annual increase for it’s Eskom direct customers. That increase has taken effect as of the 1st of April and see’s direct customers coughing up an extra 13.87% more for their electricity purchases going forward. Municipal clients will see an extra 15.63% average increase in their tariff, this will be effective as of the 1st of July, 2019.
These increases comes as a result of NERSA approving the Eskom application, as they seek to claw back their multi-billion rand debt balance. The increases are something that we as South Africans unfortunately have had to get use to. It is a sad situation and there has been an outcry, which has fallen on deaf ears and we’re resigned to the fact that this is our reality now and it’s something we have to plan around.
In more positive news, ratings agency Moody’s has been of the opinion that South Africa’s credit profile would remain stable above investment grade. This after the ratings agency skipped the issuing of it’s much waited for full assessment of South Africa’s sovereign credit rating. However, they have shared thoughts and comments around the Eskom conundrum saying the efforts of government to assist and offer Eskom with a financial package estimated to total around R150bn over the next 10 years coupled with recent tariff increase announcements “insufficient to address the company’s long-standing financial troubles”.
The power utility is about R420bn in debt. “Its debt amounts to around 8% of GDP, of which 5% of GDP benefits from government guarantees,” it said.
So please be mindful of these changes and cater for it through your budgeting. It would also be very wise to be clued up with how exactly your specific tariff has changed pre- and post- amendment. Please consult your local municipality websites or offices, or if you are a Eskom direct customer, user this link for more information.