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SA can be the Saudi Arabia of renewables, Nersa hears

Cape Town – The current process of Eskom tariff hike applications actually promotes a cycle of ever increasing prices that fail to address the fundamental issue, namely that Eskom's structure and role need to change to fit the changing energy landscape.

This was the view presented to the National Energy Regulator (Nersa) by Richard Halsey and Thando Lukuko of Project 90 By 2030 at hearings on Eskom’s application for tariff hikes.

“Eskom cannot continue to operate the same way it has for the past 40 years. Nersa should work with the Department of Energy and the Department of Environmental Affairs on solutions instead of working in silos,” said Halsey.

“At the same time, SA can be the Saudi Arabia of renewable energy resources. The change away from coal towards cheaper new technology occurring in our power sector is not unique to SA, but part of the global energy transition.”

Halsey and Lukuko asked Nersa to ensure that Eskom only receive back what is allowed to by law, and not to compensate it for past inaccurate forecasts.

Project 90 By 2030 would like to see Nersa remove at least 9.4% from Eskom’s tariff hike request.

“Forget how you come up with increases and rather ask if it is actually going to help Eskom. Its ever-escalating tariff requests are a sign that something fundamental is wrong at Eskom,” said Halsey.

“Eskom has also said it won’t purchase any additional energy from IPPs than it is already doing.  We wonder if this indicates plans to halt the large-scale renewable energy programme of Eskom?”

In her presentation to Nersa, Thembeka Majali of the One Million Climate Jobs Campaign said rising levels of unemployment and decreasing wages mean more and more people cannot afford electricity.
 
“Don’t punish the people who are already suffering to try and be able to afford electricity,” she asked Nersa.

Sandra Dickson of Electricity Tariffs Must Fall echoed this plea.

“Eskom, we don’t want you to die, but wake up and sell what is on your shelf (its excess capacity),” said Dickson.

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