Eskom asks for 20.5% power tariff hike next year

Source: Reuters/Siphiwe Sibeko

Eskom cited an expected rise in spending on power supplied by independent producers, a carbon tax and coal procurement costs among reasons why it should be granted the sharply higher tariff, a summary of its application showed.

Nersa has to make a decision on the application by 25 February, the High Court ruled earlier this month, following a dispute between the two parties.

Eskom argues that Nersa has not allowed it to recoup sufficient revenue via electricity tariffs and says that is one of the reasons why it is dependent on government bailouts.