Eskom apologizes for load shedding and acknowledges the NERSA ruling

Calib Cassim, Chief Financial Officer of Eskom, asserts that the National Energy Regulator of South Africa (NERSA)-approved electricity pricing hike will contribute to the utility’s long-term viability.

Despite plunging South Africa into darkness, NERSA awarded Eskom an 18.65% tariff rise from 1 April 2023 on Thursday, January 12.

Cassim stated that the choice would be beneficial from a financial and sustainability standpoint. The revenue estimates of R319 billion and R352 billion for the fiscal years 2024/25 will permit a further migration toward a price level that reflects the efficient cost of providing power.

The utility stated that it “appreciates NERSA’s difficult decision.”

“Eskom is aware of the impact this decision would have on consumers. Once NERSA decides to restructure prices, Eskom will be able to implement tariff revisions for its consumers beginning on April 1, 2023.

“It is observed that NERSA has reviewed capital-related costs in comparison to the earlier judgment. This considerably contributes to Eskom’s ability to recoup debt-related expenditures, as stated by Eskom.

To address the ongoing electrical crisis, President Cyril Ramaphosa has canceled his trip to Davos. Image: Flickr

The troubled utility company also apologized for the severity of load shedding.

“Eskom apologizes again for the severity of load shedding. The reduction of load shedding is Eskom’s top priority, and all levels of the organization are devoted to this objective.

“Eskom notes the reduction of diesel usage for the operation of open cycle gas turbines to 6% load factor.” Eskom and NERSA are clearly aligned, and every effort must be made to increase the energy availability factor at Eskom power units.”

In the meantime, the Democratic Alliance (DA) has urged South Africans to take to the streets to protest load shedding and rate increases.

The party said that it will organize a large protest march to the ANC headquarters in Johannesburg on January 25 to protest the ANC-engineered electricity crisis.

»Eskom apologizes for load shedding and acknowledges the NERSA ruling«

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