Molefe to argue Eskom’s proposed tariff hikes
Acting Eskom Chief Executive Officer, Brian Molefe, is expected to argue that an increase in tariffs will shorten the load-shedding period and improve overall generation stability during a hearing which will start on Tuesday. The National Energy Regulator of SA (Nersa), will hold the hearing in Cape Town, with Molefe expected to urge it Nersa …
Acting Eskom Chief Executive Officer, Brian Molefe, is expected to argue that an increase in tariffs will shorten the load-shedding period and improve overall generation stability during a hearing which will start on Tuesday.
The National Energy Regulator of SA (Nersa), will hold the hearing in Cape Town, with Molefe expected to urge it Nersa to give Eskom an additional R11 billion per year to power the power utility’s open cycle gas turbines.
A total R5.8 billion funding will be needed per year for short-term contracts with independent power producers and further funds for an increased environmental levy.
An Eskom presentation reads: “This expenditure will contribute towards Eskom creating space to do necessary maintenance whilst mitigating the impacts of future load shedding.
“[Eskom] requires an adjustment 10% linked to the extraordinary costs to limit load shedding.”
According to the utility, it is convinced that the only way to restore plant reliability is to put emphasis on proactive maintenance, which includes refurbishment.
Molefe is further expected to explain that Eskom’s next generation new build assumptions in the Multi-Year Price Determination application did not materialise.
On Monday, the Democratic Alliance said Eskom’s proposed 25.3% electricity tariff hike from Nersa is simply a reflection of the ANC’s mismanagement of a crucial national asset.
The party said that consumers are being forced to subsidise the inefficiency of Eskom, adding that many cannot afford to do this. Eskom has however defended the need for the increase, saying it is in the interests of avoiding a permanent crisis.
