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JOHANNESBURG - The National Energy Regulator of South Africa (Nersa) has invited comments to its published municipal tariff guideline increase of 6.84 percent. 

Nersa in December last year approved Eskom’s allowable revenue of R190.34-billion for the 2018/19 financial year. Eskom had requested an allowable revenue of R219.514bn, which translated to 19.9 percent. The approved allowable revenue of R190.348bn has resulted in an average percentage price increase of 5.23 percent. 

A number of South Africa’s municipalities are Eskom’s customers and are licensed to distribute electricity to their own customers. While Eskom’s electricity tariff increase kicks in on April 1, municipalities will increase their tariffs in July 1. 

Nersa has proposed a municipal guideline increase of 6.84 percent. The body said municipalities applying for an increase higher than the guideline should justify their increase to Nersa. An approval of such an increase would be based on, among others, a detailed plan on the additional funds requested. 

Nersa said the plan, which must be submitted to the regulator, should provide a detailed revenue analysis “whereby it indicates the revenue when using the approved guideline percentage increase versus the actual required revenue…” 

The body said the approved funds should be ring-fenced to ensure that the extra funds are strictly utilised for the identified projects.