/ 9 April 2008

Sanef questions Eskom’s need for confidentiality

The South African National Editors’ Forum (Sanef) has questioned Eskom’s insistence on keeping secret sections of its application for tariff hikes.

”Eskom seeks to destroy the public’s right to know about matters that will significantly increase the cost of electricity,” Sanef said on Wednesday.

Sanef called on the National Electricity Regulator of South Africa (Nersa) to insist that the entire Eskom submission be open to the public.

Eskom was granted permission on Monday by Nersa to have ”commercially sensitive” information on its proposed 53% tariff-increase application withheld from the public.

Nersa made an edited version of Eskom’s application available on its website on Tuesday for public comment and subsequent hearings.

Sanef said it is ”disturbed” that the power utility wishes to maintain secrecy about certain submissions contained in its application.

Eskom said the secrecy it is requesting is related to coal purchase contracts.

”According to media reports, Eskom some years ago benefited from highly favourable contracts, which enabled it to maintain cheap electricity tariffs.

”Subsequently, it manipulated those contracts in such a way that those cost advantages disappeared, resulting in the latest request for an exorbitant tariff increase,” said Sanef.

The forum said that in the light of these circumstance the utility, by maintaining secrecy over certain aspects of the ”rationale” for its tariff-increase application, could be keeping important information about its conduct of affairs from the public.

”The provision of electricity is a vital public service and the increase sought is several times higher than the amount Eskom originally intended requesting, which, itself, was double the inflation rate,” Sanef said.

Nersa granted Eskom a 14,2% tariff hike late last year, instead of the 18% it had initially applied for 2008/9 financial year. — Sapa