Eskom tariff hikes to take place in 2021

Cash-strapped households and struggling businesses will face more pressure in the form of higher electricity tariffs. The court has given the power utility the go-ahead to hike tariffs in order to recover R69-billion equity injection. courtesy #DStv403

JOHANNESBURG - The first of Eskom's tariff increases should take place from April next year, if everything goes according to plan, according to the power utility.

Hasha Tlhotlhalemaje general manager of Regulations at Eskom said the first of the incremental tariff increases will take place from 1 April 2021.

The High Court found Nersa acted illegally when deducting a R69-billion equity injection into Eskom.

READ: Nersa fights back in battle with Eskom over tariffs

Eskom is now allowed to recover the funds over a three year period.

This could mean an increase of at least 10-percent.

The utility welcomed the ruling and says it will assist in becoming financially stable.

But Nersa has expressed concerns saying the judgment, if unchallenged, will suppress economic activity.

Source
eNCA