Eskom Chief Financial Officer, Calib Cassim, says the electricity tariff increase announced by the National Energy Regulator of South Africa (NERSA) will contribute to the sustainability of the power utility.

NERSA announced on Thursday that it was granting Eskom an 18.65% tariff increase.

“Eskom notes the decision by NERSA. This decision will positively contribute from a financial and sustainability point of view. The revenue determination of R319 billion and R352 billion for the financial years 2024/5 will allow a further migration towards a price level that reflects the efficient cost of producing electricity,” Cassim said.

The power utility said it “appreciates the tough decision made by NERSA”.

“Eskom… recognises the pressures this determination will place on consumers. Once NERSA makes a decision on the restructuring of tariffs, these decisions will ensure Eskom can apply the tariff adjustments to its customers from 1 April 2023.

“It is noted that NERSA has reconsidered capital related costs when compared to the previous decision. This significantly contributes to allowing Eskom to recover costs related to debt commitments,” Eskom said.

The power utility said apologised for the extent of load shedding.

Consumers have not been spared a single day without the planned power cuts since the turn of the New Year.

“Eskom again apologises for the severe extent of load shedding. The minimising of load shedding is the highest priority for Eskom and continuous focus at all levels in the organisation is being given.

“Eskom notes the tempering of the volume of diesel for the operation of open cycle gas turbines to a load factor of 6%. It is evident that both Eskom and NERSA are aligned that every effort needs to be made to improve the energy availability factor at Eskom power stations.

“The shortage in capacity due to both Eskom performance and the delays in the Independent Power Producers projects need to be addressed,” Eskom said.

Meanwhile, Statistics South Africa has revealed that the generation of electricity has decrease.

“Electricity generation decreased by 1.7% year-on-year in November 2022. Seasonally adjusted electricity generation increased by 1.8% in November 2022 compared with October 2022. This followed month-on-month changes of 2.1% in October 2022 and -7.3% in September 2022.

“Seasonally adjusted electricity generation decreased by 3.1% in the three months ended November 2022 compared with the previous three months,” Stats SA said.

The consumption of electricity is also on the wane.

“Electricity distribution decreased by 2.3% year-on-year in November 2022. Seasonally adjusted electricity distribution increased by 0.9% month-on-month in November 2022, following month-on-month changes of 2.6% in October 2022 and -8.1% in September 2022.

“Seasonally adjusted electricity distribution decreased by 3.8% in the three months ended November 2022 compared with the previous three months,” the institution said.