Fin24

Eskom initiates MYPD 3 process

2012-06-22 16:19

Cape Town - Eskom will apply to the National Energy Regulator of SA (Nersa) for the third multi-year price determination (MYPD 3) before the end of the year, the parastatal said on Friday.

The MYPD 3 would set out electricity prices for the period beginning April 1 2013.

"The second MYPD 2 expires at the end of March 2013," it said in a statement.

Eskom submitted a draft of its proposed MYPD 3 application this week to the SA Local Government Association (Salga) and the National Treasury for comment, in compliance with the requirements of the Municipal Financial Management Act (MFMA).

The act requires that organised local government and the Treasury be given 40 days in which to comment on the application, and that their inputs be taken into account in the final application which is submitted to Nersa.

Eskom said in contrast to the MYPD 1 and MYPD 2, which both spanned three years, Eskom was now proposing a five-year determination for MYPD 3 to ensure a predictable, longer-term price path for customers, investors, and the country.

"The minister of public enterprises must table the Nersa decision on the MYPD 3 in parliament by March 15 2013. An extensive programme of public hearings and consultation precedes the decision," it said.