South Africa’s standard electricity users will bear the brunt of the R32.7-billion the state-owned power utility can recover in unbudgeted costs incurred in the 2014 to 2017 financial years, the energy regulator said.
Eskom is able to raise power prices by at least 4.4% starting on 1 April to claw back the expenses through its so-called regulatory clearing account, the National Energy Regulator of South Africa said in an e-mailed statement on Tuesday.
It first announced the amount on 14 June, and today said standard tariff customers will pay for R31.1-billion of that, with international clients and those on negotiated pricing agreements footing the bill for the rest.
The utility is facing financial strain as a result of factors including weak demand, delinquent municipalities that don’t pay their bills and widespread allegations of corruption. Eskom wanted to recoup R66.6-billion for the three financial years through to end-March 2017. — Reported by Ana Monteiro, (c) 2018 Bloomberg LP