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A prepaid electricity meter.
Energy expert Professor Samson Mamphweli says South Africans should brace for another possible electricity price hike due to the National Energy Regulator of South Africa (NERSA) is not likely to face consequences for its recent blunders.
A few days ago, NERSA confirmed that it had entered into an out-of-court settlement with Eskom, following the mistakes it made in determining the power utility’s revenue for the current and next two financial years.
As a result, consumers will have to fork out up to R54 billion more through higher electricity tariffs, phased in over two years.
Electricity tariffs are now three times higher than the anticipated consumer inflation rate.
“It is the nature and extent of the consequence management process of NERSA themselves. You might know that in their governance processes they have a provision for people to make errors and then there’s no consequence management or there might not be provisions for people to make these kinds of errors and guidelines on how to deal with this when errors of this nature arise,” Mamphweli.
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