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Nersa delays decision on Eskom’s tariff hike

The National Energy Regulator of South Africa (Nersa) has delayed its decision on Eskom’s application to hike electricity tariffs a further 8% to 16.6% this year.

Nersa was originally scheduled to announce its ruling this morning, but has now postponed it until next week Tuesday.

“Certain information still needs to be verified,” Nersa’ Charles Hlebela told EWN. “When the invitation went out today, the energy regulator was hoping that that information would have been finalised.”

Eskom says it needs to recover R22.8 billion, R11 billion of which has been chalked up to lost revenue due to lower than anticipated sales. The parastatal has already been granted a tariff increase of 8.6% and says it needs a further 8.0% for its diesel-powered turbines and to battle the rising cost of coal.

However, aside from the general disgruntlement among civilians who would more than likely resent an eye-watering hike in electricity prices, South Africa’s business community has pointed out higher tariffs could severely impact job creation and services.

Nersa’s decision to delay its ruling comes just a couple of days after Finance Minister Pravin Gordhan delivered his 2016 budget to parliament, in which he announced a R180 billion investment for the completion of Medupi, Kusile and Ingula power plants.

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