rate hikes

The National Energy Regulator (NERSA) approved a proposal made by state-owned utility Eskom to increase the price of its electricity.In a press statement, NERSA said it allowed Eskom to increase its energy tariffs by 2.2% during the 2017/2018 financial year.

Eskom had in the last quarter of 2016 filed the proposal to increase its energy tariffs to meet its growing operational costs.

The approved energy tariff increase will allow the utility to raise R205.2 million needed to ensure the energy company sustains its customer services and grid reliability.

Amongst the R205.2 million set to be raised by Eskom, R33.6 million will be used to purchases energy generated by Independent Power Producers. [Ofgem introduces price cap for prepay customers]

Energy tariffs approval

Meanwhile, the New York State Public Service Commission (PSC) approved Con Edison’s tariff increase to raise the capital needed for its smart grid investment plan.

Audrey Zibelman, chairman at PSC, said the approved smart grid investment plan "... furthers our efforts to move utilities toward a cleaner, more distributed, customer-centric model for utility service, along with less costly and cleaner alternatives to traditional utility infrastructure investments.

“In addition, for both electric and gas, improvements are made to ensure the most vulnerable customers are protected and that the delivery systems are resilient and reliable.”

The approval of Con Edison’s smart grid investment plan will allow the utility to increase its tariffs by 2.3% in 2017, by 2.4% in 2018 and by 2.4% in 2019 for its consumers residing in New York who consume above 300KW/h per month.For Con Edison’s customers using 450KW/h per month in Westchester County, the utility will increase the cost of its electricity by 2.5%, 2.6% and by 2.6% within the next three years.

The utility’s gas customers using above 100 therms per month will witness increases in their bills by 1.6%, 5% and by 3.2% between 2017 and 2019.

With the increased energy tariffs, Con Edison will raise funds to increase its total capacity generated from renewable energy resources including solar. Read more...

Image credit: www.bt.com.