JOHANNESBURG (Reuters) -South Africa’s energy regulator Nersa said on Thursday that it had granted struggling state power utility Eskom an overall average tariff increase for the 2022/23 financial year of 9.61%, versus the 20.50% increase Eskom had applied for.
Nersa rarely allows Eskom the full amount it applies for, with disputes between the two often ending up in the courts.
Eskom argued that Nersa has not allowed it to recoup sufficient revenue via electricity tariffs over many years, citing that as a reason it has been dependent on government bailouts.
Eskom said on Thursday that the implications of Nersa’s decision for its financial sustainability needed to be further understood. It said in a statement that its board would deliberate further about next steps.
(Reporting by Nelson Banya and Alexander Winning; Editing by Alison Williams and Bernadette Baum)
