Eskom on Friday commented for the first time on the much-criticised 18.6% tariff hike granted by the National Energy Regulator of South Africa (NERSA), saying it appreciates the “tough decision”.
In a statement, released on “Friday the 13th”, the struggling power utility said the tariff hikes were expected to bring financial sustainability.
Eskom said it “appreciates the tough decision made by NERSA for the FY2024 and FY2025 revenue determinations and recognises the pressures this determination will place on consumers”.
The struggling power utility, which is implementing Stage 6 load-shedding, said it will apply the tariff adjustments to its customers from 1 April 2023.
“Eskom notes the decision by NERSA. This decision will positively contribute from a financial and sustainability point of view,” said Calib Cassim, Eskom’s Chief Financial Officer.
“The revenue determination of R319 billion and R352 billion for the financial years 2024/5 will allow a further migration towards a price level that reflects the efficient cost of producing electricity.”
Eskom said it notes the tempering of the volume of diesel for the operation of open-cycle gas turbines to a load factor of 6%.
The statement further said: “It is evident that both Eskom and NERSA are aligned that every effort needs to be made to improve the energy availability factor at Eskom power stations.
“The shortage in capacity due to both Eskom’s performance and the delays in the Independent Power Producers projects needs to be addressed.
“It is noted that NERSA has reconsidered capital-related costs when compared to the previous decision.
“This significantly contributes to allowing for Eskom to recover costs related to debt commitments.”
Eskom had initially asked for a 32% tariff increase.
The power utility said it was waiting for the reasons from NERSA on how the revenue determinations were derived.
In the same statement Eskom apologies for the “severe extent of load-shedding. The impact on individuals and businesses is understood”.
Eskom added: “The minimising of load-shedding is the highest priority for Eskom and continuous focus at all levels in the organisation is being given”.
