Eskom’s 25% increase is denied
Nersa has denied Eskom's application of a 25% tariff increase.
The National Energy Regulator of SA (NERSA) announced today that it has decided not to approve Eskom’s application for the Selective Re-opener of the third Multi-Year Price Determination (MYPD3) application for its Open Cycle Gas Turbines (OCGTs) and the Short-Term Power Purchase Programmes (STPPPs) and the impact of the increase in Environmental Levy.
The Energy Regulator has requested that Eskom submits:
- an application for the adjustments in the allowed revenue in accordance with the MYPD methodology
- a new application for the period April 1, 2016, to March 31, 2019 ,with indicative projections for the period April 1, 2019, to March 31 2021.
On April 30, the Energy Regulator received Eskom’s application for the Selective Re-opener of the MYPD3 application for OCGTs and STPPPs and the impact of the increase in the Environmental Levy for the 2015/16 to 2017/18 period.
Eskom’s selective re-opener application requested cost recovery of R32.9-billion for OCGTs and R19.9-b for the STPPPs.
According to Eskom’s application, the selective re-opener would have resulted in a total price increase of 25.3% for 2015/16.
This would consist of the 12.69% already approved by Nersa, 10.10% selective re-opener for OCGTs and STPPPs and 2.51% change in environmental levy by 2c/kWh.
Nersa 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.
The Addie is awaiting comment from Eskom.
