Tag: price hike

Eskom granted 15% tariff hike

Source: MyBroadband

Eskom will increase electricity tariffs by 15.63% on 1 April 2021, following an agreement reached with the National Energy Regulator of South Africa (Nersa) for the 2021/2022 financial year.

The settlement was confirmed in a court order handed down by Justice Joseph Raulinga on 15 February.

Raulinga had in January 2021 heard Eskom’s application to have an earlier High Court order allowing the increases executed, pending Nersa’s appeal of the matter in the Supreme Court of Appeal.

The High Court in 2020 found that the power utility should recover R69-billion in a phased manner over a three-year period.

Nersa had reportedly negotiated with Eskom and reached a settlement of R10-billion to mitigate the risk of the court ordering a R23-billion addition, the amount the High Court had originally found Eskom was entitled to for the next financial year.

This would have resulted in an increase of 21%.

The new court order stated that “an amount of 5.44c/kWh will be added to the average standard tariff for Eskom customers in the 2021/22 tariff year making the aggregate standard tariff for Eskom customers in the 2021/22 tariff year 134.30c/kWh”.

Phased tariff increases
News of the increase comes a day after Eskom CEO André de Ruyter said the utility was working with Nersa to ensure its planned tariff increases don’t come as shock to customers.

These comments came during a recent episode of FMF’s The Free Marketeers web series, during which De Ruyter elaborated more on Eskom’s plans to reduce load-shedding, increase its operational reliability, and improve finances.

He maintained cost-reflective tariffs were required to address Eskom’s revenue shortfall, as the quantum of electricity Eskom sold had for a fairly long time remained flat, which Eskom attributed to a lack of growth in the economy.

According to benchmarking that the utility had done internationally “on a number of fronts”, it was absolutely convinced that Eskom’s electricity price was below the norm.

De Ruyter said Eskom was making good progress in negotiations with Nersa for price increases.

“We will be able, I believe, to address the electricity tariff increase issue in a way that does not cause a price shock to the economy,” De Ruyter said.

“We are at idem [in agreement] with Nersa that what we want to avoid is a sudden large increase in the cost of electricity that causes distress to households and businesses.

“What we are going to try and do within the confines of the regulatory system is to have a phased approach to this,” he added.

De Ruyter emphasised that the amounts on the bill that a business or homeowner would get differed from Eskom’s actual electricity selling price. These bills would include the additional charges that municipalities or other distribution authorities charged.

He submitted that those charges would in instances vary from justifiable, to very high, and above the norm.

 

South African consumers will experience their first price drop at the pumps in six months as the price of fuel decreases by nearly a rand today.

Petrol 95 will fall by 95 cents a litre and 93 octane by 96 cents, while diesel (0.05% sulphur) will decrease by 74 cents and diesel (0.005% sulphur) by 75 c/l.

However, analysts are pointing out that consumers will have little to celebrate as electricity tariffs hikes kicked in on 1 July.

Despite the fact that the average car will cos R30 to R40 less to fill, consumers are unlikely to achieve much relief.

  • Bus and taxi fares are unlikely to go down
  • Electricity tariffs are increasing
  • The petrol price decrease only accounts for about R2.50 for every R1 000 people have

A litre of petrol is now nearly R16

By Jay Caboz for Business Insider SA 

After last night’s increase, a litre of petrol will cost twice as much as a litre of Coke. These favourite local SA items will cost the same as – or more than – a litre of petrol will tonight.

After tonight’s price increase South Africans will be paying almost R16 per litre for petrol. In Gauteng one can expect to pay R15.79 per litre while coastal cities will pay R15.20 per litre, according to the Central Energy Fund.

The recent fuel hikes have been taxing on South African motorists who will now be forking out even more following May’s 49c per litre increase.

Business Insider South Africa visited shopping stores to see how this compared to some of South Africa’s daily items on the isles.

These favourite local SA items will cost almost the same as a litre of petrol will tonight:

  • A litre of Clover Long Life Full Cream Milk – R15.99.
  • A 300ml bottle of drinking yogurt (R15.08) or a 500g tub of plain low fat yogurt (R15.99).
  • A 2-litre bottle of Coca-Cola – R15.99.
  • A 5-litre bottle of water – R16.99.
  • 750ml of No Name Cooking Oil – R15.99
  • A 250ml can of Red Bull Energy Drink go for R14.99.
  • A 350ml refill of Sunlight dish washing liquid.
  • A six pack of hotdog rolls from Pick n Pay – R14.99.
  • A kilogram of rice – R15.99.
  • For the sweet tooth you can get a packet of marshmallows (R15.49), a small packet of Cadbury Tumblers Raisins (R16.13), or a 85g packet of microwave popcorn (R16.49).

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