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Eskom did not show us necessary savings: Nersa

───   05:33 Tue, 30 Jun 2015

Eskom did not show us necessary savings: Nersa | News Article

Pretoria - Eskom did not show the National Energy Regulator of SA (Nersa) the savings it could have made from considering alternative options to an increase in electricity prices, it said on Mo

"At the time when they [Eskom] made the application, they did not show us the savings they would have made from other options...and other saving which would have accrued from other plants," full time member for electricity and chairperson of Nersa's electricity sub-committee Thembani Bukula said.
 
"Those are items we required for a proper assessment of the application."
 
He was addressing media and officials in Pretoria after announcing Nersa's decision to deny Eskom's application for an additional price increase on top of what it had already approved.
 
The application was denied as it lacked important information Nersa required to make a proper assessment of it.
The power utility's application was also made too late for the increase to have been implemented in accordance with the Municipal Finance Management Act.
 
Asked about Eskom's statement that should the price hike not granted, there would be an increase in load shedding, Bukula said Nersa did not get the impression that such a reality was poured in concrete.
 
"From where we sit we didn't get the impression it was this [a price increase] or an increase in load shedding," Bukula said.
 
On the same question, chairperson Jacob Modise said it was important to note that no one wanted load shedding.
 
"The stability of the electricity system is important for the country and it's something that we as the regulator need to ensure happens," Modise said.
 
"We want an Eskom that is viable, that can provide sufficient electricity [for] the country but at the same time we want tariffs that are affordable and more predictable and certain."
 
"Now, in applying ourselves in using the [Nersa] methodology, we are quite satisfied in our engagement with the licensee [Eskom] the need for load shedding over time should be done away with."
 
Eskom had asked Nersa to approve an additional 9.58% price hike. This would bring the total increase this year to over 22% after an increase in April.
 
Eskom, which imposes rolling blackouts on an almost daily basis due to inadequate electricity capacity, is facing a funding gap to 2018 of up to R200bn.
 
The government has pledged to provide Eskom with a R23bn capital injection and a R60bn loan from the state will be converted into equity to improve the utility's liquidity and boost its borrowing capacity.
 
-News24.com

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