South Africa’s power regulator NERSA has granted Eskom a 13.3% increase in its tariffs for 2008/09, falling far short of the 53% hike proposed by the state-owned power supplier.

Eskom asked for the increase in tariffs to help it fund a huge R350bn expansion project, as it looks to increase capacity in order to stave off the power crisis, which saw load shedding across the country earlier this year.

Today’s price hike takes the total tariff increase for the current year to 27.5%. NERSA also said that it expects a rise in electricity prices of between 20% and 25% a year for the next three years.

“If the current economic climate continues to prevail and Eskom's capital expenditure programme remains as currently stated, then tariff increases of between 20-25 percent per annum are projected over the next three years,” said NERSA chairman Collin Matjila.