Electricity price to rise by 12.69% next year

October 10, 2014
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Nersa approved Eskom's plans to recoup losses after it had under-recovered money during the multi-year-price-determination 2 (MYPD2) control period between 2010 and 2013.

"Nersa announced today [Friday] that it has approved the implementation plan of the Regulatory Clearing Account [RCA] balance of R7.818 million for Eskom Holdings SOC Limited," Nersa said in a statement.

"The RCA balance will be a once-off recovery from the standard tariff customers as well as other Eskom customer categories and will only be implemented in the 2015/16 financial year."

This meant consumers would pay an extra 4% on top of the eight percent hike approved under the MYPD3 control period.

"The implementation of the second multi-year-price-determination [MYPD2] RCA in 2015/16 will result in an average tariff increase of 12.69% for standard customer tariffs from the eight percent approved in the MYPD3 decision of February 2013."

Nersa approved the RCA balance in July.

The RCA is a regulatory mechanism that allows Eskom to adjust for over-or under-recovery of revenue, as initial price determinations are based on projections and assumptions.

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