NERSA (South Africa’s National Energy Regulator) has approved Eskom’s allowable revenue of R 190.348 billion for the 2018/19 period. The approved allowable revenue of R 190.348 billion will result in an average percentage price increase of 5.23%. The decision was based on national public hearings, the consumer price index and a further decision was taken by NERSA in which Eskom’s allowed revenues must be recovered from their standard and non-standard tariff customers (NPAs and international customers) based on the previously approved tariff principles and structures using the Eskom Retail Tariff Structural Adjustment (ERTSA) methodology approved by NERSA. NERSA followed due regulatory processes in considering Eskom’s revenue application for 2018/19 financial period.
Based on current local and international factors consumers felt the increase in December 2017 which was related to international oil price and weakening of the rand against the dollar adjusting prices below as follows:
Unleaded 93: R 0.75
Unleaded 95: R 0.74
Illuminating paraffin: R 0.76
Diesel: R 0.64
The National Treasury has published the second draft carbon tax bill for introduction into parliament on 26 December 2017. Public hearings are expected to commence early 2018 in which the process will include formally tabling the Bill in Parliament which is expected by mid-2018. The implementation date will be determined through a separate and later process by the Minister of Finance which will be announced either in 2018 or at the 2019 budget speech. This will be complimented by a package of tax incentives and revenue recycling measures to reduce the impact of electricity increases within the first phase of the policy up to 2022. Further, in order to ensure a minimal impact on the price of electricity in the initial phase, a credit for (or reduction in) the electricity generation levy and the renewable electricity premium (built into the current price of electricity) will also be introduced. Some revenue recycling measures have already been introduced, such as the energy efficiency savings tax incentive (introduced in 2013) to help with the transition to a lower carbon economy. NUS’s on-line energy data management system converts electricity, natural gas and other consumed fuels into CO2 emissions equivalent, calculating the carbon footprint for your business operations. Our solution provides benchmarking, analytical and reporting tools for Scope 1 (direct), Scope 2 (indirect) and Scope 3 emissions, facilitating compliance with Energy Star, CRC, CDP and other emission monitoring and reporting programs.