Massive Eskom tariff hike approved by Nersa
Energy regulator Nersa has given Eskom the go-ahead to increase its tariffs by 18.65% in 2023 and 12.74% the following year. The increase is lower than the 32% hike Eskom was seeking but the increases will allow the power utility to recover R318 billion for 2023/24 and R352 billion for 2024/25. In determining the hikes Nersa said it had to balance various factors, which included economic circumstances like high interest rates, low growth, unemployment and load-shedding. Read more on BusinessTech.
Ramaphosa says his hands are tied on Nersa’s decision
President Cyril Ramaphosa says he cannot interfere in the decision-making process around tariff increases. The president said he was concerned by the ever-increasing cost of living and apologised to South Africans for ongoing load-shedding but reiterated his hands were tied. Presidency spokesperson Vincent Magwenya said Eskom needed the money and a balance needed to be maintained. Read more on EWN.
Economist says South Africa is heading for disaster
Economist Dawie Roodt said the only way to deal with the electricity crisis is to put Eskom under business rescue. Roodt said Nersa was there to determine prices under normal circumstances but “this is not normal” and the government must take drastic action to save Eskom. Read more on MyBroadband.
Placing Eskom under Gwede Mantashe’s watch would be a disaster
The proposal to bring Eskom under the purview of the department of mineral resources and energy has alarm bells ringing not least of which includes the attitude of the minister in charge. Mantashe is unrepentant in his support for coal, expensive nuclear energy, and his aversion to clean renewable energy under the guise of job preservation. His department has also slowly been sliding into the same decay Eskom finds itself in. If the DMRE can’t look after itself, how will it ensure the smooth running of Eskom? Read more on Daily Maverick.
What’s happening in the markets?
The JSE pared gains after the US jobs report was released yesterday with the All Share Index adding just 0.13% to close at 78,628 points. The rand firmed along with other emerging market currencies and at 06.24 am it was trading at R16.74 against the greenback. At the same time, in Asia markets have opened mixed while overnight in the US, markets closed firmer following positive inflation numbers.
