South Africa: Nersa approves 9.8 percent tariff increase

The National Energy Regulator of South Africa (Nersa) has approved an average increase in the electricity tariff for standard customers of 9.8% in 2016-17. The increase follows an application by national utility Eskom to recoup unexpected costs incurred in 2013-14 through a mechanism called the regulatory clearing account (RCA). It allows Eskom an increased revenue over the period of R11.2bn ($727m), less than half of the R22.8bn the utility had applied for and only a marginal change on the increased revenue allowance already approved in the third multi-year price determination (MYPD3), which covers the period 2014-18.