It was in the country’s national interest for the National Energy Regulator of South Africa (Nersa) to “choose appropriately” when it makes its decision on Eskom’s tariff hike, the parastatal’s acting chief executive, Mpho Makwana, said in Midrand on Thursday.
He was addressing the second last day of Nersa’s public hearings on the tariff hike.
Nersa has held public hearings countrywide on the proposed tariff hike of 35% every year for three years.
According to Eskom, tariffs have to be raised to help fund its R385-billion expansion plan.
“I have addressed hearings in eight provinces now and I still say the right decision for Nersa’s panel is simple — 35%, 35%, 35% ,” Makwana said.
The acting chief executive added that there had been a misunderstanding around Eskom’s new coal-fired power station, Kusile.
“At no point has Eskom raised the question of privatisation. We’re simply saying that the board of Eskom has given us a mandate to look for private equity players for Kusile.”
Makwana said that Eskom had to make up for “a long time of underinvestment”.
“We have not invested sufficiently for the future,” he added.
While Eskom’s funding model made use of both tariffs and other funding sources, he explained that tariffs were meant to cover the costs of energy supply.
“In an ideal world — which this is not — power stations should be funded from other sources and not tariffs. And while we are seeking to do this, this is not an ideal world,” Makwana said.
People attending the hearings squeezed into the medium-sized conference room at Gallagher Estate in Midrand on Thursday.
Suited businessmen and women squeezed into seats, some taking up places on the floor, while other observers held placards denouncing the proposed price hike.
Some read: “We want solar power”, “No to 35% increase”, and “Eishkom” printed on Eskom’s signage.
However, security officials then started to chase them through the aisles to remove their placards.
Proceedings were briefly halted when one woman from Earthlife refused to leave and tried to evade officials by running up and down the hall.
“You don’t know why I’m here and you don’t understand what’s happening here,” she said loudly before her placard was torn up and she was asked to leave the venue. — Sapa