/ 10 February 2009

Eskom applies for tariff hike, says minister

Eskom has submitted a long-awaited application for a new tariff increase to the national power regulator, Minerals and Energy Minister Buyelwa Sonjica said on Tuesday.

While granting a tariff hike last June, the National Energy Regulator of South Africa (Nersa) said at the time that electricity prices could rise by between 20% and 25% a year over the next three years.

But Sonjica said she did not know how much of an increase the utility was seeking.

”A proposal has been submitted by Eskom … I don’t know the contents of the proposal,” she told reporters at a mining conference in Cape Town.

”Given that Nersa as a regulating body is supposed to enjoy some independence it is only when I’m required to mediate that I can get a preview to the information.”

Nersa last June approved a total 27% tariff hike, short of a 53% hike requested by Eskom.

The utility, which needs more income to help fund its R343-billion power expansion programme, said last year it would draft the application taking the difficult economic conditions and its impact on consumers into account.

Eskom and Nersa were not immediately available for comment. — Reuters