Eskom says they will consult with shareholders before commenting on Nersa's refusal to grant a 9.58% tariff increase.
Eskom says they will consult with shareholders before commenting on Nersa's refusal to grant a 9.58% tariff increase.
The National Energy Regulator of SA (Nersa) announced today they would not allow the increase, which Eskom CEO Brian Molefe said was necessary to run the power utility's open cycle gas turbines.
These require diesel.
During Eskom's quarterly State of the System briefing on 17 June 2015, Molefe said the turbines are used extensively to prevent or minimise loadshedding.
He admitted their use was expensive, but said the cost to the economy would be bigger if they were not used.
Eskom generates 2 000MW from diesel-fuelled turbines, Molefe said during the briefing.
Grocott's Mail participated in the briefing via conference call.
Eskom's bid for the 9.58% tariff increase was the selective reopener for the third multi-year price determination for the period 1 July 2015 to 31 March 2016. Acting chief executive of Eskom Thava Govender said, “We note the decision made by Nersa, and we will study the details of the determination and consult with the shareholders before we can comment further on its impact.”
In a statement issued today, Eskom said the increase sought 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 impact of load shedding on the economy.
In Nersa's public hearings last week, individuals and organisations strongly opposed the proposed electricity price hike.
Meanwhile, in Makana Municipality, an electricity tariff increase of 12.2% was approved for 2015/16. This forms part of the municipality's integrated development plan and budget for 2015/2016 which was adopted in a special council meeting on 29 May.
