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NERSA approves 15.06% tariff increase for Eskom customers
- Municipalities to announce individual tariff increments
- Economists warn of impact on food prices
The National Energy Regulator of South Africa (NERSA) has approved a 15.06% tariff increment for direct customers of Eskom. The approved increment will take effect at the municipal level from the 1st of July, 2021.
Major Municipalities across the country are to announce tariff increments in the coming weeks. The City of Cape Town has announced a planned increment of 13.5%. The City of Johannesburg, City of Tshwane also, cautioned on an approximate increase of 14.5%. Ethekwini in KwaZulu-Natal has advised a 14.9% increment should be expected. These increments will take effect from 1st July 2021.
Economists in the country have cautioned on the impact of these increments on food prices in the country. The Pietermaritzburg Economic Justice and Dignity (PMBEJD) Household Affordability Index analysis for March 2021 shows a 12.6% inflation on Household Food Basket. ”We predict that with the increases in fuel and electricity, that food prices will increase beyond 10% for the 2021 term” the report said.