The average tariff increase for various categories of Eskom customers arising from the National Energy Regulator of South Africa’s (Nersa’s) recent allowable revenue decision has been tabled in Parliament as is required for these increases to be legally implemented on April 1.

On January 12, Nersa approved revenue of R318-billion for the State-owned utility for 2023/24 and R352-billion for 2024/25. Once translated to increases in Eskom’s standard tariff, these revenue increases amount to a hike of 18.65% for this financial year and 12.74% in 2024/25.

In an annexure included in the tabling to Parliament, which was made on March 13, it is indicated that Nersa has approved a tariff hike of 18.65% for most tariff categories, together with an average increase for municipal customers of 18.49% with effect from July 1, 2023.

However, the hike for Homelight 20A customers, or poor residential customers, has been limited to 10%.

Eskom will now publish a tariff book on its website to provide more detail with regards to what increases will be implemented from April 1, which will also affect the municipal adjustment from July 1.

While Eskom had requested Nersa to also approve an overhaul to the tariff structure, the regulator decided on March 10 to approve only Eskom’s proposed Homeflex tariff for residential customers. Homeflex introduces a residential time-of-use tariff and a new offset rate for those with small-scale embedded generation for compensation for energy exported to the grid.  

The implementation of the tariff hike on April 1 is also not going to be affected by legal challenges to the hikes, after the Democratic Alliance (DA) and the Tebelia Institute withdrew their respective applications for and urgent interdict against the implementation of the increases.

In the Tebelia Institute and DA’s application the interdict formed the first part of a two-part review application. The review, or Part B, of that application is now scheduled to be heard during May. Part B challenges the Nersa determination made on January 12 for Eskom’s allowable revenue.

A separate case by the United Democratic Movement (UDM) and others addresses the loadshedding aspects.

The participants have agreed to address the revenue-related matters in the DA-led case and the loadshedding matters in the UDM-led case.

The urgent aspect of the UDM-led case (focus on loadshedding) is proceeding from March 20, 2023 in the Gauteng High Court.

In light of the proposed Economic Freedom Fighter’s protest action, it may take place virtually and is anticipated to continue for a few days from March 22.