The National Energy Regulator of South Africa (Nersa) said on Monday that it would not grant 9.58% Eskom tariff increase that the utility had requested in the selective reopener for the third multi-year price determination for the period 1 July 2015 to 31 March 2016.

The increase was to fund higher usage of open cycle gas turbines  and cover the cost of buying capacity from the short-term power purchase programme in order to limit the severity of load shedding and the impact on the economy.

“We note the decision made by Nersa, and we will study the details of the determination and consult with the shareholder before we can comment further on its impact,” says Eskom acting chief executive Thava Govender.

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