Electricity tariffs to increase dramatically

October 4th, 2018, Published in Articles: EE Publishers, Articles: Energize

The National Energy Regulator of South Africa, Nersa, has approved the liquidation of Eskom’s third mutli-year determination (MYPD3) regulatory clearing account (RCA) balances for the 2014/15, 2015/16 and 2017/18 financial years over a four-year period. On 14 June 2018, the regulator approved that a total RCA balance of R32,69-billion will be recoverable from standard tariff customers, local special pricing agreements (SPAs) and international customers.

Table 1: The liquidation of Eskom’s RCA balance over a four-year period.

The regulator says that the RCA balance of R31,105-billion will be recovered from standard tariff customers and R1,585-billion will be recovered from Negotiated Pricing Agreement (NPA) and international customers. Table 1 shows the liquidation of Eskom’s RCA balance over a four-year period.

Eskom will recover R8,173-billion from standard customers for the 2019/20, 2020/21, 2021/22 and 2022/23 financial years. The amount that will be recovered from NPAs and exports equates to R0,396-billion in the 2019/20, 2020/21, 2021/22 and 2022/23 financial years.

Nersa says it will publish the reasons for its decision “in due course”.

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