Eskom acting chief executive Brian Molefe and chairman of the National Energy Regulator of SA (Nersa) panel Thembani Bukula clashed in midweek at the close of two days of hearings into a request for an additional Eskom tariff.
They disagreed over procedural and legal issues and the speed at which Nersa was effecting a decision.
Bukula reiterated that there was no undue political pressure on the regulator to grant Eskom increases and that Nersa was independent.
“This is not a combative process – Eskom did not have to be so defensive‚” Bukula said.
“By June 29 a decision will be made.”
On Tuesday, Molefe was surprised when Bukula said Eskom could only get a tariff increase next year.
Bukula said Nersa had in its possession a letter written by Eskom to the Treasury indicating the increases could only be implemented in the 2016 financial year.
Molefe has argued that the tariff hike is necessary to generate an additional R15-billion in revenue and to avoid protracted load-shedding as the funds would be used to pay for diesel for some generators and to buy electricity from independent power producers.
But there has been strong opposition to the hike.
On Wednesday the Energy Intensive User Group said its 33 members‚ who were South Africa’s largest electricity consumers‚ were at a “tipping point” over pricing and consistent supply.
“By 2017, South Africa will have some of the most expensive electricity tariffs in the world‚” Shaun Nel‚ project director‚ said.
The group concurred with previous representations that stated Eskom’s request ignored statutory requirements.
It said Eskom’s ability to supply electricity had fallen dramatically since the rolling blackouts of 2008.
The group said that between 2006-07 and 2017-18, energy prices in South Africa would shoot up 345% if the new Eskom increase was granted.
This would mean basic electricity charges had risen from 20c/kWh to 89c/kWh in the period‚ excluding municipal surcharges.
Dumisani Dakile‚ a Congress of South African Trade Unions (Cosatu) central executive committee member said the “working class and poor will have to bear the brunt of Eskom inefficiencies”.
Lack of maintenance at Eskom was a major problem.
Medupi and Kusile‚ two new power stations that are behind schedule‚ “are a clear case of a lack of project management skills”, he said.
Cosatu was “surprised and disappointed” that the so-called Eskom war room had advised the utility to seek a tariff increase.
Eskom presses for tariff hike
They disagreed over procedural and legal issues and the speed at which Nersa was effecting a decision.
Bukula reiterated that there was no undue political pressure on the regulator to grant Eskom increases and that Nersa was independent.
“This is not a combative process – Eskom did not have to be so defensive‚” Bukula said.
“By June 29 a decision will be made.”
On Tuesday, Molefe was surprised when Bukula said Eskom could only get a tariff increase next year.
Bukula said Nersa had in its possession a letter written by Eskom to the Treasury indicating the increases could only be implemented in the 2016 financial year.
Molefe has argued that the tariff hike is necessary to generate an additional R15-billion in revenue and to avoid protracted load-shedding as the funds would be used to pay for diesel for some generators and to buy electricity from independent power producers.
But there has been strong opposition to the hike.
On Wednesday the Energy Intensive User Group said its 33 members‚ who were South Africa’s largest electricity consumers‚ were at a “tipping point” over pricing and consistent supply.
“By 2017, South Africa will have some of the most expensive electricity tariffs in the world‚” Shaun Nel‚ project director‚ said.
The group concurred with previous representations that stated Eskom’s request ignored statutory requirements.
It said Eskom’s ability to supply electricity had fallen dramatically since the rolling blackouts of 2008.
The group said that between 2006-07 and 2017-18, energy prices in South Africa would shoot up 345% if the new Eskom increase was granted.
This would mean basic electricity charges had risen from 20c/kWh to 89c/kWh in the period‚ excluding municipal surcharges.
Dumisani Dakile‚ a Congress of South African Trade Unions (Cosatu) central executive committee member said the “working class and poor will have to bear the brunt of Eskom inefficiencies”.
Lack of maintenance at Eskom was a major problem.
Medupi and Kusile‚ two new power stations that are behind schedule‚ “are a clear case of a lack of project management skills”, he said.
Cosatu was “surprised and disappointed” that the so-called Eskom war room had advised the utility to seek a tariff increase.
Would you like to comment on this article?
Register (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Trending Now
Latest Videos