Faizel Patel – 17/02/2021
South Africans will be paying 15% more for electricity from 1 April.
The North Gauteng High Court on Tuesday approved the increase in the electricity tariffs.
The order is in response to Eskom requesting the execution of a High Court decision that allowed the recovery of incorrectly deducted Government equity support for the FY 2021/22.
Eskom says the order by the court allows it to recover efficiently incurred costs for the production of electricity.
It say implementation of the order will allow Eskom to move towards addressing some of the revenue shortfalls and help to improve the power utility’s financial sustainability.
“It also contributes to the “user pay” principle and is likely to lessen the financial burden of supporting Eskom on the Government, releasing the government to focus on other priorities.”
Eskom Chief Financial Officer Calib Cassim welcomed the decision, and stressed that poor residential customers will continue to be supported through the free basic electricity programme, as well as affordability subsidies provided for in the NERSA tariff decision.
The High Court order allows a further 5.44c/kWh increase.
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