Eskom is one step closer to getting an interim tariff increase after the National Energy Regulator’s (Nersa’s) electricity sub-committee on approved a recommendation on May 9. The recommendation is expected to serve before the regulator for a final decision before the end of the month.
The committee was however at pains to keep the rand value of the increase Eskom applied for and the percentage increase recommended under wraps.
The increase would be over and above the 8% annual increase granted last year for the period April 1 2013 – March 31 2018 and would only be implemented on April 1 2015.
It is aimed at compensating Eskom for lower sales and costs it incurred during the three-year tariff period from April 1 2010 – March 31 2013 over and above costs provided for in the revenue Nersa earlier granted it for that period. The recovery mechanism is limited to prudently incurred costs and escalations outside of Eskom’s control.
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