The 2016/17 Nersa-approved price increase On 7 March 2016, the National Energy Regulatory of South Africa (Nersa) approved the 2016/17 average price increase to the standard tariffs of 9.4%. The standard tariff increase of 9.4% recovers the 2016/17 multi-year price determination (MYPD3) allowed revenue plus an additional R10.257billion from the 2013/14 Regulatory Clearing Account (RCA) balance. The RCA is a globally accepted regulatory principle that provides an MYPD3 risk mechanism to cater for changes in the previous decision. Through the RCA, Nersa may allow Eskom the recovery of variances between the MYPD decision’s forecasted costs and Eskom’s actual costs. Nersa approved the 2016/17 Eskom schedule of standard tariffs with the following increases:

As per the MYPD3 decision, to cater for affordability, the Homelight 20A increases are 7.2% for Block 1 and 9.0% for Block 2. The increase to the affordability subsidy charge is 8.61% to recover the incremental subsidy due to the lower Homelight 20A tariff increase. It is important to note that due to changes in the way a customer uses electricity (load profile and volume variances) from one year to the other, customers may perceive a variance from the average tariff increase. For customer impact calculations and Eskom’s schedule of standard prices, please refer to the website: www.eskom.co.za\tariffs