These graphs show why Eskom is hiking electricity prices
Eskom is set to increase its electricity tariffs in South Africa following a recent judgement by the North Gauteng High Court.
This ruling addressed an incorrectly deducted amount of R69 billion from the Multi-Year Price Determination (MYPD) which determines Eskom’s electricity prices.
The court found in favour of Eskom, stating that the power utility should recover this amount over a three-year period.
The power utility confirmed to MyBroadband that this ruling meant it could proceed with price increases.
It said the average price of electricity at the moment is significantly lower than what it costs to efficiently produce the electricity.
This results in the taxpayer subsiding Eskom’s continued losses instead of paying enough to cover the cost of producing power.
Eskom said that it expects to increase electricity tariffs in South Africa by 10% as a result of this ruling, with the changes coming into effect for the 2021/2022 financial year.
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