The National Energy Regulator of South Africa (Nersa) has turned down Eskom’s request for an additional 12.61% increase in electricity tariffs.
This is according to energy expert Chris Yelland, who was at the announcement.
The 12.69% price increase which came into effect on 1 April 2015 will remain in place.
Officially, the additional increase Eskom is asking for is 9.58%, which would have pushed the total increase for 2015 to 24.78%.
However, Yelland said that the price increase was worse than it seemed and would actually total 31.61%.
Nersa chairman Jacob Modise said that Eskom must go back to the drawing board and submit an application consistent with the constitution of South Africa and the Municipal Financial Management Act.
There are other sources of funding for Eskom other than a price increase, Nersa said, adding that the door is not closed on launching a new application for a selective re-opening of Nersa’s third multi-year price determination (MYPD3).
Any such application must just comply with MYPD methodology.