Johannesburg - Eskom said on Monday it had initiated the process for the next revenue application to the National Energy Regulator of South Africa (Nersa) to hike electricity tariffs.
Eskom has already implemented the decision by Nersa to cap the tariff increase for the 2017/18 financial year at an average 2.2 percent. The increase was effective for Eskom customers from April 1, but municipal customers will experience an average 0.3 percent increase with effect from July 1.
Eskom's full year revenue of R 205.214 million for the 2017/18 financial year resulted in a percentage increase of 2.2 percent as determined in the Multi-Year Price Determination (MYPD3) decision. In the MYPD3 decision, Nersa approved an eight percent average increase per annum for a period of five years, starting from April 1, 2013 to March 31, 2018.
Eskom's chief financial officer, Anoj Singh, said: "The previous multi-year decision made by Nersa for the period 1 April 2013 to 31 March 2018 comes to an end on 31 March 2018; therefore, there is a need for Eskom to make the next application." Nersa has approved that Eskom can make a revenue application for a single financial year, the 2018/19 year.
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Eskom Board had approved a draft revenue application for consultation with the South African Local Government Association (SALGA) and the National Treasury in order to meet the relevant legislative and regulatory requirements. The Municipal Finance Management Act (MFMA) requires Eskom to consult with these entities before submitting its final revenue application to Nersa.
They are allowed 40 days to provide comments. Eskom said it has received their responses. "The responses from SALGA and National Treasury are being considered. Eskom envisages that it would submit the final revenue application to Nersa during June 2017."
AFRICAN NEWS AGENCY