2.2% Eskom annual tariff increase for Municipality set for 01/07/17

Nersa has approved an increase of 2.2% as the annual electricity tariff increase for non-Eskom electricity utilities. This increase will be effective from the 1st July 2017.

In the first year of the Multi Year Price Determination3 “2013/14”, Eskom increased the tariff by 8% as approved which they also applied in the following period of 2014/15. Early 2015 NERSA allowed Eskom a tariff adjustment of 12.69% instead of the agreed 8% in response to the body’s application to allow a claw back of R18.3 billion variances in revenue and expenses relating to the previous MYPD2. As a result, the increase for 2016/17 period should have been only 3.5%. However Eskom submitted another application to claw back R22.7 billion of revenue and cost variance incurred in 2014/15 but NERSA only approved R11.2 billion hence the 9.4% increase for the 2016/17 period. This year the body has authorized Eskom to raise the tariff by 2.2% which will be implemented as from the 1^st of July 2017 for municipalities. NERSA sights a lower increase this year due to the base adjustments made in the early years as a result of the approved Regulatory Clearing Account (RCA) balances for Eskom.

For more information regarding your upated tariff please visit your local municipality.

• Buffalo City(East London)

• City of Cape Town(Cape Town)

• City Power (Johannesburg)

• Ekurhuleni (Germiston)

• eThekwini (Durban)

• Mangaung (Bloemfontein)

• Msunduzi (Pietermaritzburg)

• Nelson Mandela Bay (Port Eleizabeth)

• Tshwane(Pretoria)