APA-Johannesburg (South Africa) The South African government has approved electricity tariff increases of 18.65 percent for 2023/24 and 12.74 percent for 2024/25 financial years as part of efforts to improve viability of state-owned power utility Eskom.
Public Enterprises Minister Pravin Gordhan is expected to table the proposed tariff increases in the National Assembly by mid-March.
In a letter to National Assembly Speaker Nosiviwe Mapisa-Nqakula, Gordhan he planned “to table a total average upward adjustment for the electricity retail tariff of 18.65% for 2023/24 and 12.74% for 2024/25.”
“I request the annual average price increase and the schedule of standard prices for Eskom tariffs for municipalities be tabled in parliament on or before March 15, 2024 as contemplated in the Municipal Finance Management Act to allow for the implementation with effect from July 1, 2024,” he said in the letter seen by APA on Tuesday.
The government approval was in response to an application by the National Energy Regulator of South Africa whose mandate is to regulate the electricity, piped-gas and petroleum pipeline industries in the country.
The approval comes as South Africa is battling rolling electricity cuts partly blamed on aging equipment at Eskom power stations.
JN/APA