South African state-owned utility, Eskom, is proposing that its consumers pay 19.9% more for their power from 1 April 2018.
In addition, the proposal seeks 27.3% more from municipalities for bulk electricity purchases from July 1 2018.
Having set sights on a confidential document, Moneyweb reported that the proposed tariff hike was disclosed in a confidential draft tariff application for 2018/19 that Eskom submitted for comment to National Treasury and local government association Salga.
“Eskom is expected to incorporate the comments from National Treasury and Salga before submitting its application to energy regulator Nersa in the coming week. Public consultations will be held before Nersa decides on the increase,” Moneyweb reported.
Tariff hike implemented for Eskom consumers
This follows the National Energy Regulator of South Africa’s (Nersa’s) decision of an average 2.2% tariff hike for the 2017/18 financial year.
In a statement on Monday, the parastatal noted that the increase was effective for Eskom customers from 1 April 2017.
Municipal customers will be liable for this payment effective 1 July 2017.
Eskom chief financial officer Anoj Singh says: “The previous multi-year decision made by Nersa for the period 1 April 2013 to 31 March 2018 comes to an end on 31 March 2018; therefore, there is a need for Eskom to make the next application.
“Nersa has approved that Eskom can make a revenue application for a single financial year – the 2018/19 year.”