NERSA says no to Eskom request for a price increase
The National Energy Regulator (NERSA) has decided not to approve Eskom’s application for the Selective Re-opener of the third Multi-Year Price Determination application.
This application was for Eskom’s Open Cycle Gas Turbines (OCGTs) and the Short-Term Power Purchase Programmes (STPPPs).
According to Jacob Modise, Chairperson of the Energy Regulator, if approved, the selective re-opener would have resulted in a total price increase of 25.30 per cent for 2015/16.
This would consist of the 12.69 per cent already approved by the Energy Regulator, 10.10 per cent selective reopener for OCGTs and STPPPs and 2.51 per cent change in environmental levy by 2c/kWh.
“On April 30, 2015, the Energy Regulator received Eskom’s application for the 2015/16 to 2017/18 period,” said Modise.
“Eskom’s selective reopener application requested cost recovery of R32,9bn for OCGTs and R19,9bn for the STPPPs.
“The Energy Regulator made the decision after conducting due regulatory processes, which included publishing Eskom’s application and inviting written comments from stakeholders, as well as holding a two-day public hearing on Eskom’s application.
‘We would like to thank all stakeholders for their active participation in the Energy Regulator’s decision-making process,” said Modise.
“Their valuable comments and contributions are taken into consideration by the Energy Regulator.”
Visit www.nersa.org.za in due course for the reasons surrounding NERSA’s decision.
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