Public hearings on power hikes
16 October 2009
South Africa's energy regulator has urged the public to take part in hearings on state company Eskom's application for a tariff hike of 45% each year for the next three years.
The National Energy Regulator of South Africa (Nersa) said on Thursday that it would conduct public hearings in Gauteng province from 20 to 22 January 2010, and deliver its decision on Eskom's application on 24 February 2010.
Due to unprecedented public interest, Nersa said it was also considering conducting regional/provincial public hearings "aimed at broadening accessibility, public consultation and participation".
This was in line with its commitment to adhering to due process and being transparent in its decision-making process.
"The dates and venues of the regional/provincial public hearings will be published in due course," it said in a statement.
Nersa urged all interested parties to submit written comments before the 30 November deadline, and attend or make oral presentations at the public hearings in January 2010.
- Written comments can be submitted to Pule Mothiba or Priya Singh at mypd2@nersa.org.za or faxed to 012 401 4600.
Nersa said it had received an application from Eskom on 30 September 2009 for an adjustment to the required revenue for the period 1 April 2010 to 31 March 2013.
"Considering the projected volumes/sales, this revenue applied for translates into an application for an electricity price increase of 45 percent per annum for the three year period," Nersa said.
Nersa said it had on Wednesday approved the approach and timelines for processing Eskom's Multi-Year Price Determination for the 2010 to 2013 period (MYPD 2).
"On 29 October 2009, Nersa will publish the Issues Paper requesting comments on specific issues regarding Eskom's MYPD 2 application."
Earlier this week, Eskom said it had submitted a proposal to Nersa for a 45 percent tariff hike each year for the next three years.
The current price of electricity was around 33 cents per kilowatt-hour, which did not allow for the recovery of all Eskom's prudently incurred costs and the building of reserves to sustain its asset base, it said.
The tariffs also did not support the parastatal's capital expansion programme.
Eskom said it needed a price between 80 to 88 cents a kilowatt-hour.
Sapa
