Eskom has been granted a 31.3 percent tariff increase, the National Energy Regulator of SA said on Thursday.

This will result in a rise in the average standard tariff from 25.24 cents per kilowatt hour to 33.14 cents, Nersa chairman Collin Matjila said in Pretoria.

The increase will come into effect on 1 July.

The adjustment would result in an estimated standard tariff revenue of R62.031 billion from distribution standard tariff sales of 198 857 gigawatt hours.

Matjila said the approved price increase on the average standard tariffs included a limited price increase of 15 percent to both Eskom and the various municipalities' poor customers.

In addition, he added that Nersa would conduct a "verification" of all costs and "costs determined not to have been efficiently incurred in line with the multi-year price determination rules".

These costs would be "clawed back".

Eskom's high cost of coal and staff

Eskom came under fire during the public hearings into their tariff increase application for the high costs of mainly coal and staff.

Matjila said Nersa may look into coal costs, but this would be "subject to confidentiality".

The energy regulator had taken into account the 175 written comments on the application, as well as a total of 21 oral presentations made earlier this month.

The parastatal's interim application unleashed a storm of criticism from trade unions and civil society groups due to the anticipated affect it would have on the poor.

Eskom was also widely criticised for missing the legislative deadline for its tariff hike application and for failing to provide sufficient information to substantiate the need for the increase.

"We hope this ad hoc application will not be a thing of the future," said Matjila, referring to the late application.

He also noted that the parastatal was required to cut costs.

In addition, he said Eskom was required to submit its price increase applications to the regulator six months ahead of the date it would take effect from.

Addressing the lack of information provided by Eskom in its application, the regulator said it would issue minimum requirements to "provide clarity" on the information needed for tariff applications.

Sapa

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