Eskom may receive an extra income of R13.3 billion, the National Energy Regulator of South Africa (Nersa) has decided.
This means electricity will become more expensive, but it is not yet clear when and by how much.
If the R13.3bn is recovered from power consumers over a year, that means a 6.5% increase in power tariffs, energy expert Chris Yelland calculated.
This is in addition to the annual tariff increases of 8.1% and 5.2% that Nersa has already approved for this year and next.
The latest allowable income of R13.3 billion stems from Eskom’s application in terms of the so-called adjustment account mechanism (RCA). This RCA application was for the 2018-19 financial year and Eskom actually wanted R27bn of extra revenue.
The RCA process is where Eskom can ask for extra revenue if the actual market factors differ from the assumptions on which it based its initial tariff application for a particular financial year.
Nersa says Eskom will develop a plan on how it wants to recover the R13.3bn from consumers, and then Nersa must first approve it.