Eskom price hike rejected

The National Energy Regulator (NERSA) has refused to grant Eskom another tariff increase.

NERSA last week held public hearings on Eskom’s “selective reopener application for the third Multi-Year Price Determination”.

Eskom had sought a price increase of 25.30% for the 2015/16 financial year‚ effective from July 1 (Wednesday). This comprised the 12.69% already approved by the Energy Regulator‚ the 10.10% selective reopener for Open Cycle Gas Turbines and the Short-Term Power Purchase Programme‚ as well as 2.51% for the increase in the Environmental Levy by 2c/kWh.

NERSA chairperson Jacob Modise said today that Eskom’s application does not comply with certain municipal acts.

He also noted that high prices of electricity would result in job losses and that this was Eskom's third Multi-Year Price Determination application to NERSA.

- RDM News Wire.