Eskom has made an application to the National Energy Regulator of SA (NERSA) for the recovery of R13.271 billion. If that request is approved, customers will have to make peace with a double digit electricity price hike.
At a virtual public hearing yesterday, Eskom general manager Hasha Tlhotlhalemaje argued that the current electricity “user pay” principle was creating new debt and burdening the country’s small pool of taxpayers as more bailouts are required for the power utility.
In addition to the 5.7% multi-year-price hike, customers might have to deal with a 10% price increase in 2022.
NERSA wanted to know what’s ESKOM’s rationale of pursing such an exorbitant increase at the risk of declining demand.
Analysts continued to lambast the utility for constantly asking for recoveries from in light of the state capture and its poor governance track record.
“Eskom wants to recover R13.271 billion worth of efficient abs prudent costs it has incurred – by 2020,” Tlhotlhalemaje said. She urged NERSA to consider the user-pay principle as soon as possible to prevent the utility from going into further debt that will cost the customers more in the long run.
Last month, Eskom took NERSA to the Gauteng High Court to ask to be allowed to recover the R23bn in the financial year.
Tom Blom, energy analyst expressed his disgust by Eskom seeing more “ridiculous tariff increases” when MYPD hikes have already been added.