Eskom has applied for a 53% hike in tariffs, the National Energy Regulator of South Africa (Nersa) announced on Tuesday. It said it had received the application earlier in the day.
Eskom is seeking this hike in place of the 14,2% increase it was granted in December last year. It would be a 60% nominal increase including inflation.
The electricity utility has said it wants the figure revised because of ”increased primary energy costs” and ”accelerated demand-side management” costs.
”In the light of the current electricity-supply shortage and load-shedding in the country, the energy regulator will give urgent attention to Eskom’s application and make its decision after following due process,” Nersa said.
Encouraged by comments made by Finance Minister Trevor Manuel during the delivery of the 2008 budget speech in February, Eskom seems confident that the regulator may concede its request after the wide publicity the national coal and power crisis has attracted.
The South African government said it would give Eskom a R60-billion loan to help it fund its R343-billion rand, five-year build programme. But consumers were also warned that tariffs would have to be increased if Eskom was to deliver on its ambitious power-generation plans.
At 22c per kilowatt-hour (kWh), South Africa’s electricity is considered cheap, and the price, which is below comparable prices internationally, is said to be contributing to the mismatch between supply and demand. What is more, the current price of electricity is too low to generate appropriate returns on new investment in power generation.
Besides the electricity tariff increases increasing electricity bills, consumers will also have to pay the levy of 2c per kWh introduced by Manuel in this year’s budget. Consumers also face an additional threat of a penalty of 75c per kWh if they exceed their electricity quota.
Asking Nersa to reject Eskom’s request for a possible additional increase, trade union Solidarity said workers ”could no longer carry the burden of Eskom’s poor planning”.
”Long-term planning by Eskom would have seen to a gradual escalation of electricity rates and would also have prevented the scourge of load shedding,” said Solidarity spokesperson Jaco Kleynhans.
”An additional increase in electricity tariffs, coupled with the rising cost of living, will subject a struggling economy to even greater pressure,” Kleynhans said. ”Eskom is trying to make up in a hurry for increases that should have been levied over a period of 10 years.”
Easter electricity
Meanwhile, Eskom says it is unlikely that there will be power cuts over the Easter weekend.
It said in a statement that two of the nine generating units that had been out of action on ”unscheduled maintenance” came back earlier on Tuesday, and two more were expected to come on line on Tuesday evening.
”However, load-shedding will continue until after evening peak [9pm] as the wet weather continues,” it said. ”The cold and wet weather has increased the demand for electricity and adversely affects coal handling at the power stations.”
Eskom said it was load-shedding up to 2 500 megawatts, and the risk of cuts would remain until Thursday.
”We don’t expect any load-shedding over the long weekend as demand patterns are historically lower during holidays,” said Erica Johnson, Eskom’s chief officer for networks.
The restored units have removed any immediate threat of power cuts to mines, Eskom said.
In January, power shortages forced gold and platinum mines to shut down for five days.
Load-shedding survey
Half of South Africans say Eskom power cuts have little effect on their lives, a survey has revealed.
A sample of 2 000 people were asked in February this year whether they agreed or disagreed with the statement ”Load shedding is having little effect on my life”. Fifty percent agreed.
The results of the poll, conducted by TNS Research Surveys, were released on Tuesday. About 46% of those questioned said power cuts had indeed affected them, while 4% said they did not know .
The survey found the load-shedding badly affected black South Africans in Gauteng financially, especially those in the Vaal Triangle and on the West Rand. Durban residents also felt the financial pinch of power cuts with Cape Town and Eastern Cape residents being the least affected.
More Gauteng residents found themselves caught in gridlocked traffic due to the power cuts, while Eastern Cape residents barely reported experiencing this.
Most respondents tended to blame Eskom and the government for the country’s power problems and most felt it would have a dire effect on the country’s economy.
TNS Research Surveys identified a 30% negative response rate, where anger levels became serious. ”This anger will be directed at both Eskom and government as people feel both carry some blame.”
There were, however, mixed views on how the power crisis would affect the 2010 Soccer World Cup. Black respondents were fairly optimistic and white respondents very pessimistic. — Sapa, I-Net Bridge