South Africa’s energy regulator has apologised for a R54 billion ($3.1 billion) mistake in calculating electricity tariffs, an error that will be passed directly to consumers.
The National Energy Regulator of South Africa (Nersa), which sets the rates Eskom can charge, admitted the miscalculation stemmed from a “data input error” identified by Eskom. Although flagged earlier, it went uncorrected for five months.
The correction means electricity tariffs will rise by 8.76% next year instead of 5.36%, and by 8.83% the following year instead of 6.19%
“The error is regrettable; it should not have happened,” the regulator said in a presentation to lawmakers. The correction means electricity tariffs will rise by 8.76% next year instead of 5.36%, and by 8.83% the following year instead of 6.19%.
This adds to an eightfold increase in power costs since 2008, according to the Energy Intensive Users Group (EIUG), whose members — including Anglo American and Glencore — consume about 40% of South Africa’s electricity. The EIUG has called for a review of the tariff decision and Nersa’s pricing methodology.
Electricity Minister Kgosientsho Ramokgopa called the error “a big blow for the affordability of electricity” and said it forces the government to rethink its overall energy strategy.
The blunder highlights the pressure of surging electricity costs on households and industries already struggling with unreliable supply.
Read the full article at MoneyWeb
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