JOHANNESBURG - There are reports that Eskom is seeking a 20-percent price tariff increase from April next year.
It is also hoping to increase the cost of bulk electricity purchases to municipalities by 27% from 1 July 2018.
This in the midst of the controversy surrounding the aborted irregular R30-million pension payout for its former CEO Brian Molefe.
The power utility was reported by Moneyweb to have submitted a confidential draft tariff application for comment to the National Treasury and the South African local government association (Salga) regarding tariffs for 2018/19.
It has yet to submit a final application to the National Energy Regulator of South Africa (Nersa), but is expected to do so within the next week.
Nersa will subsequently conduct public hearings before making a determination on the increases.
Eskom's draft application plans for total revenue of R218.7-billion, an increase of 6.6% on the current year. However, the increased revenue will be drawn from significantly lower sales volumes, resulting in the much higher percentage increase in the cost per unit of electricity.
Eskom has acknowledged that a 20% tariff increase could impact the consumer price index (CPI) by 0.76%.
*Listen to the interview with Eskom spokesperson, Khulu Phasiwe in the gallery above.