Nersa announces power price hikes

National Energy Regulator of SA (Nersa) has announced that electricity tariffs will go up by 24.8%, 25.8% and 25.9% over the next three years.

“This will result in percentage price increase of 24.8 percent on average standard tariff from 1 April 2010 followed by another average increase of 25.8% from April 2011 and 25.9 in April 2012,” Nersa Chairwoman Cecilia Khuzwayo said on Wednesday.

This results in the average standard price of 41.57 cents per kilowatt hour for 2010/11, 52.3 cents per kilowatt hour for 2011 to 2012 and 65.85 cents per kilowatt hour for 2012/13.

In December, Eskom revised its original 45% request down to 35% following further consultation with stakeholders over its Multi-Year Price Determination over the course of the next three years.

Economists had predicted that Eskom, which wants to use the tariffs to help raise funds for a R385 billion power expansion programme, would receive a minimum 25% increment while others thought they would receive the 35%.