Eskom says it will study the details of the National Energy Regulator of South Africa’s decision to reject its proposed 9.58% tariff increase and consult with the government before commenting further on the impact.
Nersa announced on Monday that it would not grant the power utility the increase it had requested in the selective reopener for the third multi-year price determination (MYPD 3) for the period 1 July 2015 to 31 March 2016.
NERSA last week held public hearings on Eskom’s "selective reopener application for the third Multi-Year Price Determination".
Eskom had sought a price increase of 25.30% for the 2015/16 financial year‚ effective from July 1 (Wednesday). This comprised the 12.69% already approved by the Energy Regulator‚ the 10.10% selective reopener for Open Cycle Gas Turbines and the Short-Term Power Purchase Programme‚ as well as 2.51% for the increase in the Environmental Levy by 2c/kWh.
NERSA chairperson Jacob Modise said today that Eskom’s application does not comply with certain municipal acts.
He also noted that high prices of electricity would result in job losses and that this was Eskom’s third Multi-Year Price Determination application to NERSA.
The Acting Chief Executive of Eskom‚ Mr Thava Govender‚ said: "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."
The requested increase‚ he said was to fund higher usage of open cycle gas turbines (OCGTs) and cover the cost of buying capacity from the short-term power purchase programme (STPPP) in order to limit the severity of load shedding and the impact on the economy.
Eskom to consult with government on Nersa decision
Nersa announced on Monday that it would not grant the power utility the increase it had requested in the selective reopener for the third multi-year price determination (MYPD 3) for the period 1 July 2015 to 31 March 2016.
NERSA last week held public hearings on Eskom’s "selective reopener application for the third Multi-Year Price Determination".
Eskom had sought a price increase of 25.30% for the 2015/16 financial year‚ effective from July 1 (Wednesday). This comprised the 12.69% already approved by the Energy Regulator‚ the 10.10% selective reopener for Open Cycle Gas Turbines and the Short-Term Power Purchase Programme‚ as well as 2.51% for the increase in the Environmental Levy by 2c/kWh.
NERSA chairperson Jacob Modise said today that Eskom’s application does not comply with certain municipal acts.
He also noted that high prices of electricity would result in job losses and that this was Eskom’s third Multi-Year Price Determination application to NERSA.
The Acting Chief Executive of Eskom‚ Mr Thava Govender‚ said: "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."
The requested increase‚ he said was to fund higher usage of open cycle gas turbines (OCGTs) and cover the cost of buying capacity from the short-term power purchase programme (STPPP) in order to limit the severity of load shedding and the impact on the economy.
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