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Cape Town – The National Energy Regulator (Nersa) has invited members of the public and stakeholders to a hearing on Eskom’s bid for a tariff hike.
Eskom has applied for a total price increase of 25.3% for the 2015/16 financial year.
“This will consist of the 12.69% already approved by the Energy Regulator, the 10.10% selective reopener for Open Cycle Gas Turbines (OCGTs) and the Short-Term Power Purchase Programme (STPPP), as well as 2.51% for the increase in the environmental levy by 2c/kWh,” Nersa said in a statement.
At Eskom’s quarterly state of the system briefing on Wednesday, acting CEO Brian Molefe, said that the pain of consumers paying more was far less than the damage power cuts would cause to the economy.
READ: Molefe's ambitious winter plan for load shedding - As it happened
Molefe highlighted Eskom’s current reliance on diesel saying that without it the supplier would have to go into load shedding sooner and that it would be more severe.
Eskom currently spends about R1.5bn a month on diesel to power its OCGTs, and needs billions more to keep them running.
Anti-tariff hike lobby
Eskom faces a strong anti-tariff hike lobby as various interest groups have come out in opposition to the suggested electricity increases.
Cosatu on Wednesday made a submission to Nersa opposing the increase on the basis that it would be a further burden on the working class and poor. Along the same lines the Commission for Justice and Peace for Catholic Bishops said "it is unfair to pass on the financial burden of Eskom failures on the customers, especially the poor”.
Another application against Eskom's bid was submitted by energy expert Chris Yellend who believes that Nersa should reject Eskom's application because it is “unreasonable, unfair and fundamentally dishonest”.
What the people say...
Most Fin24 users took great exception to Molefe’s plan of action with some calling it ‘arrogance’ and others noting the ‘audacity’ of the supplier’s leadership.
READ: High power prices or power cuts, says Brian Molefe
According to user Yvette Abercrombie “this problem was caused by government and the increase should thus be subsidised by the government - less luxury German cars and cheaper hotel accommodation and flights for government officials and their families. Why should the hard working middle class foot the bill?"
User Peter Chennells acknowledged that Molefe had the unenviable task of fixing Eskom, but described the CEO’s move as being disingenuous.
“Eskom must FIRST recover its outstanding payments which if I read correctly stand in excess of R5bn. If this does not happen then the non-payment cycle will just continue and every time Eskom needs extra cash, industry and the PAYING public must foot the bill,” he said.
The public hearings have been scheduled for 23-24 June at the Nasrec Expo Centre in Johannesburg.
