Fin24

Eskom tariffs to take in SA economic needs

2012-03-08 15:23

Parliament - Eskom's future "price path" will take the economy's competitiveness into account, Deputy President Kgalema Motlanthe said on Thursday.

This would be based on economically sustainable electricity tariffs that balance macroeconomic and sociopolitical impacts, he told the National Council of Provinces.

Replying to questions, he said it was important for the price path to provide regulatory certainty crucial for investment in the power sector.

"Once the price path has been outlined, there will be certainty for the next 20 years regarding future electricity tariffs, as opposed to the current practice where tariffs are determined every three years."

The government was considering introducing a number of mechanisms that would ensure tariffs did not escalate in a manner that had an adverse impact on economic growth and job creation.

An interdepartmental team had been established to consider the best approach for determining the next round of electricity tariff increases for Eskom, due to take effect from April 2013.

This involved developing a model that sought to balance the socioeconomic impact of increasing electricity prices, the country’s competitiveness, Eskom’s financial viability, and the necessary policy considerations for implementing the integrated resource plan, Motlanthe said.

Comments
  • Hermann - 2012-03-08 15:31

    Whaaaahahahaha - promises promises and hopefully we will forget today's promis. Real politics, is it not.

  • kgomotso.radise - 2012-03-08 16:02

    What price path are you talking about?As if electricity tarrifs will never increase

  • ian.d.samson - 2012-03-08 16:55

    So, Mme Helen Zille, et.al., in the DA who spoke vehemently about Eskom's R91.5-billion NETT PROFIT for the 6 months ending December 2010, what is your answer?

      eaust01 - 2012-03-08 17:04

      yes, i'd like to know as well - and by the way, i second Hermann's comment - all these promises to draw the attention away from the recent staff party that cost cazillions hey....

  • Belinda - 2012-03-08 19:55

    More or less the same technology (and capital equipment) is used to generate electricity world-wide. Be it coal-fired, hydro-electric or any other method. So the cost of generating electricity in SA will be approximately the same (or higher) that the average cost in the world. Certainly whilst Eskom has to buy coal at “international” prices from local producers. So SA electricity cannot be cheaper than the cost the rest of the world, except if the price is subsidised. So from a practical point of view further price increases cannot be avoided. Not even by the Pres. of SA or his deputy. Maybe for 1 year before an important election? But then we will be hit harder later (next year?). That’s called logic…. Inescapable logic. So keep on designing energy efficient technologies, you clever people out there! We need it!!!

  • Tim - 2012-03-09 06:51

    SWITCH OFF THE STREET LIGHTS ON 24 HOURS A DAY!!! SWITCH OFF THE STREET LIGHTS ON 24 HOURS A DAY!!! SWITCH OFF THE STREET LIGHTS ON 24 HOURS A DAY!!! SWITCH OFF THE STREET LIGHTS ON 24 HOURS A DAY!!!

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