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Consumers have not been paying the true cost of electricity!

By Zanele Zama

Eskom regulations general manager Hasha Tlhotlhalemaje explains why they applied for a tariff hike of more than 20%.

The National Energy Regulator of South Africa (Nersa) is continuing with public hearings on Eskom’s proposed tariff increase of more than 20%.

Eskom has applied for an electricity price increase for the 2022/2023 financial year, which starts in April.

The power utility has received widespread criticism for the proposed tariff.

We are at a stage where we are not recovering our efficient cost of electricity and we know there have been areas of inefficiency from an operation point of view and from a corruption point of view.

Hasha Tlhotlhalemaje, Regulations general manager – Eskom

We’ve subsidised all consumers for many years so we are trying to minimise that subsidy and therefore will we have to make further increases.

Hasha Tlhotlhalemaje, Regulations general manager – Eskom

Consumers have not been paying the true cost of electricity, just the efficient cost of electricity for many years which means they have been having a permanent discount.

Hasha Tlhotlhalemaje, Regulations general manager – Eskom