30% ELECTRICITY TARIFF INCREASE!!!
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Nersa has invited the public to comment on Eskom’s request to increase tariffs to recover R66bn lost between 2014 and 2017 – the years included in the Public Protector’s “State of Capture Report”.
In a parallel process, Municipalities are also adding their markup-up on the current 5% Eskom increase granted earlier this year, with some adding more than the recommended 6.84% suggested by Nersa, through an application process which ended on Tuesday, 20 March. Public hearings for the municipal application process were abolished – a matter which has been taken up on behalf of the public by Ted Blom of Mining and Energy Advisors in correspondence with Nersa.
Eskom is planning to recover losses from corruption and loopholes in the MYPD rules by further increasing your tariffs by an estimated 30% before the end of 2018.
Despite massive corruption, inefficiencies and irregular expenditure, Eskom still shows a bottom line profit of over R20 billion before the RCA claims from 2013 to 2016.
2014 shows a net profit of R5,183bn (+R10bn RCA)
2015 shows R7,089bn (+R19.18bn RCA)
2016 shows R3.6bn (+R23.6bn RCA
2017 shows R4,617bn (+R23.8bn RCA)
Effectively, Eskom will never run at a loss as any shortfall is recovered through a flawed annual Regulatory Clearing Account (RCA) application. In other words, Eskom recovers any shortfall in projections by increasing consumer’s tariffs the following year. This increase is over and above annual tariff increases.
Traditionally, once these RCA increases are added to electricity tariffs and the funds recovered, prices are not readjusted back to normal. This practice then resumes the following year as Eskom once again over-estimates their sales.
Eskom is planning to recover losses from corruption and loopholes in the MYPD rules by increasing your tariffs by an estimated 30% before the end of 2018. Nersa has invited the public to comment on Eskom’s request to increase tariffs to recover R66bn.