Eskom must regain our trust

SOUTH Africans have learnt to brace themselves for annual electricity increases, but the latest development lands differently because it stems from a regulatory mistake rather than a change in the country’s energy needs.

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At the centre of the issue is an error in Eskom’s earlier tariff calculations, now under reconsideration by the National Energy Regulator of South Africa. In trying to correct that mistake, Nersa has opened the door to additional increases that could effectively double what consumers were initially told to expect. Instead of the 5% to 6% hikes already approved, the adjustment could allow for increases of up to 10.5% a year over the next two years - in effect a near 100% escalation on the originally approved path.