Eskom proposed tariff hikes will result in mine closures
Date: May 21, 2018
Citizen.co quoted the South African mining industry as saying that it opposes Eskom’s application for an increase to recover losses on its Regulatory Clearing Account, arguing it would have a severely negative impact on other sectors that depend on the mining sector.
Eskom has asked the National Energy Regulator of SA to grant it an additional three percent annual increase for the years 2020-2022 to help recoup losses on its RCA, and then to recover the balance over five years.
The RCA is a monitoring and tracking mechanism that compares costs and revenues assumed in the multi-year price determination made by Nersa when it awards tariff increases to Eskom, against the actual revenue and costs incurred by the utility.
