Electricity prices to remain stable

No further energy hikes are on the cards for the next two years, according to the National Energy Regulator of South Africa (Nersa).

Business Day reported that Nersa regulator for electricity Thembani Bukula gave the assurance that there would be no adjustments to the Eskom tariff Nersa approved in its multi-year price determination in 2013.

At the time, Nersa capped Eskom tariff price hikes at an average of 8% a year over the next five years, which was already above the rate of inflation.

Nersa is undertaking a reconciliation of Eskom’s 2012-13 accounts to assess whether actual expenditure exceeded what was budgeted for. The regulator will ensure that the costs Eskom passed on to its customers were prudent. Costs incurred because of poor management would not be allowed.

In the past, there has only been one revision of the tariff based on the regulatory clearing account, and that was the downward revision from 25,9% to 16% that took place in 2012 because Eskom had over-recovered its costs.

Source: BDLive.co.za