Nersa unlikely to grant Eskom 15% tariff increase: Analyst

Energy analyst, Chris Yelland, says energy regulator Nersa is unlikely to grant Eskom a 15% annual tariff increase for the next three years.

Various faith-based community organisations have voiced their concerns about the proposed tariff increases.

The power utility says it is in debt of about R419-billion.

Day two of public hearings on the matter continues in Cape Town on Tuesday.

The Southern African Faith Communities’ Environment Institute says if granted, the price increase will severely impact all consumers of electricity across the country.

It says this is unfair as many people are already struggling to pay their bills.

Yelland says: “Eskom says they are making big sacrifices and they should be asking for much higher but this is a lot and they really are asking for 19% this year.”

“So these are enormous increases that add a lot of stress and strain on the economy, businesses and the consumer. They are assuming they are going to get all their requirements from the customer or tariffs. I don’t think they are going to get all they need from the tariffs. I think Nersa is going to give them a lot less than what they ask for in the interest of the economy but that leaves Eskom with a shortfall that they will have to get from somewhere.”