Johannesburg - The National Energy Regulator (Nersa) said on Tuesday it has approved a 9.4 percent electricity tariff increase for power utility Eskom for the 2016/2017 financial year.
The 9.4 percent hike would be effective from April 1 through which Eskom would be able to recover R11.2 billion from standard tariff customers, Nersa chairman Jacob Modise announced.
Eskom had applied for a 16.6 percent increase and argued that its current deficit, for which the additional tariff revenue was needed, arose from being forced to use expensive fuel for its gas turbines to keep the lights on.
Eskom said it needed to recover R22 billion it used to avoid power outages.
At least six public hearings were held on the application to increase tariffs, which was vehemently opposed by civil organisations, businesses, unions and individuals.
Most argued that with an ailing economy and rampant unemployment, an increase would be unaffordable and would place a heavy burden on consumers, especially the poor.
Eskom submitted its application to Nersa in November last year.
African News Agency