South Africa: Hey, Sitting Ducks - Eskom Wants Another R27-Billion From You

Photo: Eskom
Eskom's national control centre (file photo).
analysis

Eskom has been petitioned by 333,000 consumers protesting against its application to the regulator Nersa for R27-billion more in tariff hikes as the deadline for comments closed on Monday 20 January.

Eskom appears set to earmark 2020 as the year in which it will fight to recoup its stratospheric losses from cash-strapped consumers. In February, hearings begin in which Eskom will petition the national electricity regulator, Nersa, to recover from consumers an additional R27-billion in costs incurred in 2019.

This comes after the first of three high court reviews began last week through which the stricken utility wants the R23-billion back from consumers for 2019, 2020 and 2021 that Nersa disallowed because of a bailout from the government. (The National Treasury has agreed to R23-billion a year for the next three years in balance sheet support for Eskom.)

Nersa reckons this could push tariffs up by 50% over the next three years. Energy expert and activist Ted Blom says the additional R27-billion request by Eskom will also double your electricity costs in 2020 if granted.

Either way, the Eskom fight means it is gunning for increases of more than 20% over the medium to long term to stave off...

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