AfriForum welcomes Nersa’s decision to allow only 3,49% increase

AfriForum welcomes the National Energy Regulator of South Africa (Nersa)’s decision to increase Eskom’s electricity increase for the 2022/2023 financial year by only 3,49%. This follows after Eskom asked for a 20,5% increase. The result of previous regulatory clearing account (RCA) decision means that the total increase will be 9,61% for the next financial year.

AfriForum opposed this electricity increase from the outset by submitting written comments to Nersa. The organisation also participated in the public participation process by submitting a presentation arguing that the costs of Eskom’s alleged corrupt activities and maladministration in calculating the increase in next year’s electricity tariff should be excluded.

“Nersa should do everything in its power to protect the consumer. This is the first step in the right direction, but we mentioned during our presentation that Nersa must go even further to make prudential assessments in Eskom’s operations. We believe that the tariff will be substantially adjusted downwards when such steps will be taken,” says Morné Mostert, AfriForum’s Manager for Local Government Affairs.

Mostert further believes that there is a possibility that Eskom will have Nersa’s decision reviewed. “In the past, Eskom has litigated against every tariff decision Nersa has made. We hope that Nersa will be able to defend their position in court.”

AfriForum will further study the reasons for this decision to protect the rights of consumers in the energy sector.

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