NERSA announces 16% electricity price increase for 2012/2013

Submitted by: Amanda Botes, Monday, March 12, 2012

On the 9 March 2012 the National Energy Regulator of South Africa (NERSA) announced its approval of Eskom’s request to increase the average electricity price by 16% for the 2012/2013 period. This percentage increase in price is lower than expected as NERSA had previously approved a 25.9 % increase for the 2012/2013 period under the second multiyear price determination period (MYPD2).

 

Prior to 2008, the National Energy Regulator of South Africa (NERSA) set increases that averaged around 8% annually.  Since 2008, NERSA has approved average electricity price increases of over 20% each year. Demand for electricity in South Africa is increasing and Eskom proposed these higher tariff increases in order to fund capital expansion to meet future demand. The graph below shows the percentage increase in Eskom average electricity prices over an eleven year period.

The average annual selling price of Eskom electricity for the 2012/2013 period was approved at 60.66c/kWh, 3.47c/kWh lower than what was previously approved by NERSA for the period. The graph below shows the increase in the average annual selling price of Eskom electricity from 12.98c/kWh in 2001 to 60.66c/kWh in 2012.

The figures in this article are based on the average prices that Eskom charges for electricity. Many residents and businesses pay a higher rate for electricity as they purchase electricity from local municipalities who in turn purchase from Eskom.

 

Amanda Botes