The National Energy Regulator of South Africa (Nersa) has allowed State-owned Eskom to raise its tariffs by 2.2% for the 2017/18 year.

Nersa chairperson Jacob Modise on Wednesday said the regulator had confirmed Eskom’s allowable revenues of R205-billion for the period.

“The approved revenues will be able to cover all of Eskom’s allowed costs, plus a return to the value of R33.67-billion as per the [third multiyear price determination (MYPD3)] decision,” he noted.

He highlighted that the allowable revenue also includes an amount of R23-billion for purchases from independent power producers as a cost pass-through in line with the MYPD3 methodology.

The Nelson Mandela Bay Business Chamber welcomed Nersa’s decision to limit the increase to 2.2%.

“All electricity users countrywide are set to benefit from this significantly reduced electricity price increase. The end-consumer in Nelson Mandela Bay will benefit from the reduced electricity price,” it said in a statement on Thursday.

The new tariff is set to come into effect in July.