Electricity tariffs increase by 12.74% on 1 April
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702’s John Perlman speaks with Mthunzi Luthuli, an engineer and energy expert.
Listen below:
From raised VAT to increasing electricity tariffs, consumers in South Africa are in for a hard time financially.
As of 1 April, electricity users will be paying even more for electricity as Eskom’s 12.74% tariff increase takes effect.
Municipalities are applying for additional price hikes to cover the cost of distributing electricity.
Luthuli says Nersa uses a formula to calculate these increases based on the revenue Eskom needs and the affordability to consumers.
“They are obliged to stick to the formula and use a systematic, logical way of arriving at the tariffs.”
- Mthunzi Luthuli
Many electricity users have criticised Nersa for allegedly not considering the cost of corruption and wastage when calculating tariffs.
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However, Luthuli believes the regulator tried to factor this in and shield users from these costs.
“I don’t think they did this completely, but at least they tried this time..."
– Mthunzi Luthuli
Scroll up to the audio player to listen to the interview for more.