The National Energy Regulator (Nersa) says it will immediately begin implementing plans that would allow Eskom to recoup over R13 billion from customers.

The cash-strapped power utility had applied to Nersa to recoup R27.3 billion through power tariffs saying it needed to cover costs incurred for the financial year 2018/19.

However, Nersa only approved Eskom to recover the R13 billion. Eskom struggles with high debts and faulty power stations and is dependent on government bailouts to stay solvent.

Nersa’s Nhlanhla Gumede says these funds will only be added onto the tariff prices, once the plan has been agreed upon.

Gumede says, “The process will start immediately, it starts with a conversation with the licensee as well as consumers of electricity. We are looking at perhaps a plan that might be developed by July/August.”

“The Eskom tariffs at the moment, the wholesale tariff, is about 85 cent per kilowatt (kWh) but that’s not the price that the consumer out there will see.  Eskom retail clients will probably see in the order of R1.29 per kWh hour.”

NERSA gives Eskom green light to make tariff adjustments


Nersa says it took the decision to give Eskom the green light to make tariff adjustments after analysing the difference between Eskom’s uncontrollable costs, its actual costs and revenues for last year.

The Energy Regulator says it also needed to balance the interests of both Eskom and the public.

Eskom recently blamed Nersa for using the lockdown as an excuse to delay dealing with outstanding matters between the two entities, including the application for this outcome.