According energy analyst, Ted Blom, the state-owned enterprise Eskom feels that they are entitled to hike fees by 90%. This figure is based on an over-estimation on sales amounting to R118 billion since 2013, which is what the parastatal is now attempting to recoup. This follows the double application by Eskom to NERSA, to increase the tariff by 15%
“Headquarters of Eskom, Megawatt park, north of Johannesburg. Eskom generates approximately 95% of the electricity used in South Africa and approximately 45% of the electricity used in Africa” Credit: ENCA
The first claim relates to a backdated claim for a shortfall of R21.6 billion for the year 2017/2018. Eskom says that this shortfall is down to below budget electricity sales revenue. This, according to Eskom, this seems to be the major component of this claim.
The second claim relates to it’s three-year budget. This is where they claim to be entitled to tariff hike of 90%, according to the Multi-Year Price Determination. The request for 15% hikes over the next three years is an attempt by Eskom to accommodate the country.
For the next three years Eskom will be permitted to clawback an additional R8bn from customers as a result of the adjudication of the regulatory clearing account (RCA). This accounts for an additional 4.41% increase, which will be added to the tariff. That means that should Eskom be granted its price application in full, tariffs in 2019-2020 will rise 15% plus the 4.4% allowed for by the RCA.