The National Energy Regulator of South Africa (Nersa) has approved an 18.65% increase in electricity prices for 2023 – and a 12.74% hike for next year.
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Both increases will come into effect on 1 April – sadly not an April Fool’s joke!
Nersa’s decision relates to the fifth Multi-Year Price Determination (MYPD) for Eskom for year two (2023/24) and year three (2024/25).
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The approved increase is lower overall than what Eskom had applied for, but is still significant – and far higher than inflation.
In September 2022, Eskom applied for a 32% price hike for 2023/24, and a 10% hike in 2024/25, equating to a recovery of R351 billion and R381 billion, respectively.
Nersa is allowing Eskom to recover R318 billion for 2023/24 and R352 billion for 2024/25.
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According to Nersa the decision was taken against the backdrop of tough economic circumstances, including high interest rates, low growth, high unemployment and load shedding.
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