Dylan Bettencourt
Eskom has asked the National Energy Regulator of South Africa (Nersa) to allow it to increase the electricity tariff by 32.66%, according to Rapport.
The report claimed that the power utility held a closed-door meeting with ministers on Tuesday last week with regard to the country’s energy crisis.
It said that four cabinet ministers remarked during the meeting that it would take around three months for Eskom to fully suspend load shedding.
However, Eskom CEO Andre de Ruyter is reported to have told South African President Cyril Ramaphosa that load shedding will be suspended by the end of this week.
Eskom earlier this year attempted to increase the price of electricity, requesting a 20.5% increase from Nersa, which was swiftly rejected.
The energy regulator instead granted a 9.61% increase.
At the time of the increase, Eskom said the hike was crucial in covering its debt, carbon taxes and the higher price of electricity purchases from independent power producers.
Eskom CFO Calib Cassim said at the time that the 20.5% increase would not have been enough.
He claimed the utility would still need a government bailout of R21 billion over the next two financial years to cover its debt.
Eskom is also said to have asked Nersa to increase its revenue from R264.8 billion to R350.1 billion, according to City Press.
The power utility is still considering taking Nersa to court over the rejection of the 20.5% increase proposed.
A recent strike by Eskom employees forced the utility to implement stage 6 loadshedding for only the second time ever.
After a two-week long strike by workers, Eskom agreed to a 7% wage increase along with a R400 increase to the workers’ housing allowance.
The power utility said the deal would cost over a billion rand between 1 July 2022 and 30 June 2023.
“This, of course, will be a struggle for Eskom to afford,” it warned.
Image source: @TheSouthAfrican
