Nersa, Outa welcome 5.2% tariff hike

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The Organisation Undoing Tax Abuse (Outa) says the 5.2% tariff increase that the energy regulator Nersa has granted Eskom is a victory for civil society.

Nersa declined Eskom’s request for 19.9% tariff hike and instead agreed to a 5.2% tariff adjustment.

Outa says Nersa should not have granted Eskom a tariff increase since consumers are already paying more for electricity.

Outa CEO Ben Theron says Eskom has been over-charging consumers in the past few years.

“We got to review what they said. Because sometimes there is a lot in the bitter and will review the judgement in terms of what was approved and then will respond accordingly. It should have been zero because over the period of two or three years over zero per cent would get to the point where at least it becomes market related.”

Nersa conducted hearings across the country in November to find out whether the cash-strapped power utility should be granted the increase.

The regulator’s Mbulelo Ncetezo says the decision on the tariff increase took into consideration the needs of consumers.

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Meanwhile Business Unity South Africa (Busa) has welcomed the 5.2% tariff increase that energy regulator Nersa has granted Eskom.

Busa CEO, Tanya Cohen, says they are happy with the way Nersa has handled the issue. Cohen says Nersa clearly carefully considered the ramifications for the poor.