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South Africa’s Eskom Asks Regulator for Extra Tariff Increase

Eskom Holdings SOC Ltd., which generates 95 percent of South Africa’s electricity, is seeking to recover higher than estimated costs through an increase in power tariffs, the utility said.

Eskom has asked the National Energy Regulator of South Africa to study how budgeted costs compared to realized expenses for the year through March 2013, company spokesman Andrew Etzinger said today by phone.

“It’s a regulatory mechanism to review Eskom’s cost structure and to propose adjustments based on those,” he said.

Any mark up this year would be on top of increases already allowed by the regulator. Nersa in February last year approved increments of an average 8 percent per year until 2018, half the rate Eskom asked for. The utility is spending 500 billion rand ($45.9 billion) to replace aging equipment and build new plants to avoid a repeat of 2008 blackouts that halted mines, including those owned by companies such as Anglo American Plc (AAL) and BHP Billiton Ltd. (BHP), for five days and paralyzed factories in the continent’s biggest economy.

To contact the reporter on this story: Andre Janse van Vuuren in Johannesburg at

To contact the editor responsible for this story: John Viljoen at

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