Dark days for Eskom?

Eskom on Monday 14 January stated its rationale for the requested average annual electricity increase application of 15% for three years under the fourth Multi-Year Price Determination (MYPD4) and Regulatory Clearing Account (RCA) balance application for 2018 made to the National Energy Regulator of South Africa (Nersa).

Eskom group chief executive Phakamani Hadebe said that Eskom understood that an increase in the tariff may be challenging at this time, but that “not being granted a suitable increase could lead to an unsustainable financial position for Eskom, which would put the country in an even more dire economic condition.

Due to various factors, the tariff was increased at below inflation for the past two years.”