Loading...
See More

Zuma appeals to Eskom

May 30 2012 19:15 Sapa

Related Articles

Transnet: Eskom hungry for coal

Eskom calls for cost-related tariff

Dames: Decisions need to be made now

Eskom worried about immediate supply

Eskom's funding to 2017 finalised

Medupi hush money claims

 

Parliament - Concern for consumers will inform Eskom's upcoming electricity tariff increase application, President Jacob Zuma suggested on Wednesday.

Delivering the presidency budget speech, Zuma pointed out that Eskom reduced its tariff hike for this year from 25.9% to 16% thanks to government's decision to sacrifice a return of R8bn.

"I had asked Eskom to explore possibilities in this regard and they responded within a month. This will put more than R8bn back into the economy during the current year," he said.

"This approach will also inform Eskom's next price application -- which Eskom is now preparing."

The electricity utility is due to submit its next tariff application to the National Energy Regulator of SA, Nersa, in July.

But Eskom's finance chief Paul O'Flaherty noted last week that the R8bn saving to consumers had been exhausted and that the time had come to move to cost-reflective tariffs, suggesting steeper increases.

He said when Eskom approached Nersa, it hoped to secure an agreement firstly to extend the multi-year price determination period to five years, and secondly to raise tariffs to levels where production costs would be covered.

This was necessary to protect Eskom's credit rating to enable it to keep borrowing money to complete its infrastructure expansion programme.

O'Flaherty said the price needed to reach 90 cents per kilowatt hour in real terms in five years' time.

paul o'flaherty  |  jacob zuma  |  eskom  |  tariff increases  |  nersa
NEXT ON FIN24X

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
17 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

We're talking about:

Small Business

Retailers of any shape and size can now unlock the power of mobile transacting.
 
 

Hottie of the day: Nicole Meyer!

Nicole is the cover girl for the 2014 edition of SA Swimsuit! Check out some smoking hot pics of here here.

 
 

Men24.com

11 things men don’t know about their clothes
Hilarious mortal kombat elevator prank!
This is how the Top Gear presenters spend their £55 million!
Thirty and still single? There’s hope!

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...
Loading...