ESKOM increases and municipal electricity tariffs explained
Issued George Municipality, 8 September 2021
The National Energy Regulator of South Africa (NERSA) determines increases in electricity prices – the increase price to municipalities as well as the increase that municipalities may levy to customers.
NERSA has allowed ESKOM to increase its prices to municipalities by 17,8 % from 1 July 2021 and approved an increase in the electricity tariff of 14.59% by all municipalities to consumers across South Africa.
In determining these tariffs NERSA takes into account that each municipality has to absorb the costs of distributing electricity through the network, operate the system and provide maintenance and reinforce the electricity network in the provision of electricity to customers.
George Municipality is concerned about the rising electricity prices that are being levied but is obliged to pass such increases on to its customers. The municipality is however investigating how it can invest in securing alternative sources of electricity with the objective to reduce the rate of future increases.