Eskom going forward with proposed increase

We will know by 29 June if Eksom will up the price for electricity and how Mogale City will be affected.

Including the annual The National Energy Regulator (Nersa) approved 12,20 per cent increase, Eskom applied for another increase, ultimately amounting to 25,30 per cent.

Nersa announced in May that it will consider Eskom’s price increase application.

Charles Hlebela, Head of Nersa’s Communications, explained that Eskom wants to incorporate a total price increase of 25,30 per cent.

Eskom submitted its application for consideration by the Energy Regulator on 30 April.

“The Energy Regulator is considering the application taking into consideration the urgent need to stabilise the electricity network to avoid a possible total blackout and Eskom’s operational and financial challenges,” Hlebela said.

Nersa will make its decision regarding the application on 29 June.

Mogale City Local Municipality’s proposed electricity tariffs for the next financial year, starting on 1 July, only indicates a Nersa approved 12,2 per cent increase of the current tariff.

No alteration has been made since 20 March.

On 17 June, Eskom released a report stating the company is making steady progress in reducing its maintenance backlog, and that in most cases it has been able to perform the requisite plant maintenance without load shedding.

“Despite a constrained and ageing power system, the company still continues to provide more than 96 per cent of country’s electricity requirements even when load shedding at stage 2,” the report read.

“Eskom has consistently warned that the power system is expected to remain constrained for at least the next two years, and that balancing supply and demand during this period would be particularly difficult.”

Eskom’s Acting Chief Executive Brian Molefe said the focus of the maintenance drive is to ensure long-term reliability and sustainability of their power generating plants.

“Going forward, we plan to continue with our maintenance programme in an effort to reduce the backlog that has accumulated over the past few years.”

Many Krugersdorpers have, because of the backlog, decided to turn to solar power.

Do you think using more solar powered or renewable energy will lead to Eskom’s prices eventually decreasing? Tell us in the comments section below.

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