NERSA, Eskom will increase electricity tariffs by 3% over the next two years

CAPE TOWN - Eskom has confirmed that consumers face a three percent electricity tariff increase over the next two years following its settlement with Nersa.

Nersa this week agreed to grant Eskom an additional R54-billion after the energy regulator admitted to miscalculating the power utility's revenue shortfall.

The out-of-court settlement has raised concerns with Nersa planning to phase in additional tariffs to fund the shortfall over the next three years.

Eskom Spokesperson Daphne Mokwena said, "To address the adjustment, Nersa will implement a tariff increase of approximately three percent over the next two years with additional revisions anticipated thereafter. Both parties remain committed to maintain single digit increases to minimise the impact on consumers."     

The South African Federation of Trade Unions (Saftu) said the increases will push millions deeper into poverty.

Saftu spokesperson Newton Masuku said, "This settlement, while correcting technical errors, represents yet another blow to the working class and poor households already devastated by austerity, unemployment, and rising living costs."

Western Cape Premier Alan Winde also rejected the settlement saying the public should be granted an avenue of recourse to challenge Nersa's oversight.