The National Energy Regulator of SA has agreed to a 24.8 percent Eskom tariff increase effective from April 1, Nersa announced on Wednesday.
Eskom had asked for 35 percent price increases in each of the next three years to help raise funds for a R385 billion power expansion programme.
Nersa approved a 25.8 percent increase from April 2011 and 25,9 percent from the same month in 2012, said its chairwoman Cecilia Khuzwayo.
She said Nersa had approved an allowed revenue of R85bn for 2010 to 2011, R109bn for 2011 to 2012, and R141bn for 2012 to 13.
As a result of the increases, the average standard price of electricity would rise to 41,57 cents a kilowatt hour in 2010/11, 52,3 cents a kilowatt hour in 2011 and 2012, and 65,85 cents a kilowatt hour in 2012 and 2013.
The multi-year price determination two (MYPD2) runs from April 1, 2010, to March 31, 2013.
Eskom has until March 1 to submit proposals for the structuring of retail tariffs of other customer classes. Nersa would make a decision on these before March 15.
The re-evaluation of assets will be phased in over five years to allow for the smoothing of prices, while allowing Eskom enough revenue and cash flow for its capital expansion programme.
Khuzwayo said those municipal distributors which implemented a 34 percent increase in the 2009/10 financial year, would have to implement a municipal guideline increase of 15,33 percent from July 1, of 16,03 percent from July 1 2011, and 16,16 percent from July 1 2012.
Nersa would consider applications case-by-case where municipal distributors had implemented a different increase.
Khuzwayo said that in studying Eskom, Nersa took into consideration its cashflow, primary energy issues, operating expenditure and asset base, and the impact on the poor.
She said South Africa was more than 75 percent electrified and the importance of electricity could not be underestimated.
"Electricity is the democracy of the country," she said. - Sapa
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