In this shocking article, you will learn how Eskom is planning to recover losses from corruption and loopholes to the sum of R66bn by the end of 2018. Here is a clue, Eskom is planning to increase our tariffs AGAIN!


  • Nersa is currently considering Eskom’s RCA (Regulatory Clearing Account) application for a refund going back to 2014-2017.
  • The total of Eskom’s claim amounts to some R66bn over the period.
  • Translated into tariff increases, this will amount to around a 30% increase in the current tariff.
  • The secondary problem with these RCA claims is that they become “embedded” in the tariff structure, and even after the R66bn is recovered, the tariff never reverts to the old level.
  • This MYPD methodology is thus defective as it never ceases the recovery, and secondly, encourages Eskom to build wild and untested assumptions into its tariff applications.
  • The defective MYPD rules also encourage Eskom to overspend – as it simply recovers such overspending from the public, also via the RCA provisions.
  • Besides they rules relating to Eskom’s tariffs being suspect and undefinable, the management of these rules between Eskom and Nersa is another issue of contention insofar as they do NOT inform the public timeously (before the relevant year end) that they are heading for losses which the public will end up funding at some later stage.
  • The further issue with the RCA’s over this particular years is that they relate to the peak stealing years as included by the Public Protector “State Capture Report”.
  • Whilst a preliminary audit might find that the amounts claimed are categorised under claimable headings, nobody has run an independent audit over Eskom’s numbers to isolate the impact and quantum of thieving.
  • If the above is true, the public is being asked to refund Eskom’s costs attributable to thieving by the “Zuptas”
  • If the above holds true, then it confirms that NERSA has NOT been conducting its oversight and Regulatory duties diligently.
  • If NERSA approves Eskom’s RCA for 20114/15, 2015/16 and 2016/17, amounting to some R66bn, it will result in an electricity tariff hike of some 30% and that will, in turn, result in further Enterprise closures, bankruptcies, and job losses.
  • In addition, Eskom still has to apply for MYPD4 which should extend to 2024.
  • Ideally, the new IRP/IEP should also be published by end 2018, to detail SA’s future energy requirements to 2040.

According to our initial estimates, Eskom will apply as follows:

MYPD4 due before end 2018

Period Est increase Domestic Mega Flex Correct *
c/kwh c/kwh c/kwh
Current 217 355 40
RCA 30% 282 462 42
2019 / 2020 20% 339 554 44
2020 / 2021 50% 508 831 46
2021 / 2022 30% 660 1080 48
2022 / 2023 30% 858 1404 50
2023 / 2024 30% 1116 1825 52
* Base year2006 plus Electricity inflation corrected

  • Thus the public will just continue funding the Eskom gravy train and the effects will compound over time.
  • Eventually, this will become reflected in the exchange rate as the excessive electricity costs make SA increasingly uncompetitive until exports cease.

Ladies and gents, the reality of the situation is you are going to be paying more and more for electricity and there does not seem to be any end to this madness, I strongly urge everyone to invest in a solar system and free yourself from this corrupt system.

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