Nersa to begin hearings on electricity tariffs

The National Energy Regulator of South Africa (Nersa)  — which sets prices and tariffs for power utility Eskom — will on Monday start a series of nationwide public hearings on what South Africans will be paying for electricity.

Over the course of three weeks, Nersa will hold hearings on what the debt-laden power utility will get to charge for electricity in years ahead, and what it can recoup from shortfalls in 2017/18.

READ MORE: Is the load-shedding holiday over?

The hearings commence on Monday in Cape Town. The energy price regulator will hear from, among others, Eskom chief financial officer Calib Cassim, a representative of the the South African Local Government Association, advisers to the mining and energy industry, and representatives from the Organisation Undoing Tax Abuse (Outa).

The hearings continue in Cape Town on Tuesday, with members of the public set to testify, before moving on to Port Elizabeth in the Eastern Cape.

Hearings will wrap up in Gauteng in late January or early February. The regulator will announce its decision on March 1.

Eskom announced in October 2018 that it has asked Nersa for a 15% tariff increase per year for the three financial years. The regulator has in the past at times not granted the full tariff increases Eskom has asked for.

Eskom said it wants Nersa to allow revenue of R219-billion for 2019/20, R252-billion for 2020/21 and R291-billion for 2021/22. For this to occur, it would need an increase of 15% a year, said Eskom.

Debt and load shedding

The national power utility is about R420-billion in debt and has been seeking ways to reduce its liabilities.

In mid-December President Cyril Ramaphosa appointed a task team to advise government on how to resolve the power utility’s operational, structural and financial challenges.

READ MORE: Your guide to surviving 2019

In late 2018, it was forced to implemented load shedding due to a combination of factors including plant breakdowns, urgent plant maintenance, lower-than-expected output from the Medupi and Kusile coal-fired power stations,and damage to the power transmission lines linking South Africa to the Cahora Bassa hydroelectric dam in Mozambique.

Although it was able to keep the lights on over Christmas and New Years due to lower demand from business and industry, Eskom has said that load shedding may again be on the cards in early January. — Fin24

We make it make sense

If this story helped you navigate your world, subscribe to the M&G today for just R30 for the first three months

Subscribers get access to all our best journalism, subscriber-only newsletters, events and a weekly cryptic crossword.”

Carin Smith
Carin Smith
A business journalist at Fin24.com.
Jan Cronje
Jan Cronje
Fin24 Journalist based in Cape Town.

Related stories

WELCOME TO YOUR M&G

Already a subscriber? Sign in here

Advertising

Latest stories

Khoisan people march to constitutional court

List of demands includes recognition of indigenous rights and the scrapping of apartheid racial classification as ‘coloured’

Eskom fails to approach courts in property ‘garbage sale’

The power utility said it would go to court to declare ownership of land not registered to it, but has not done so

Improving cross-border trade policy is vital in solving the African...

Governments need to invest in agricultural and trade infrastructure, better farming methods and in intra-African trade

Women climbing the corporate ladder need good mentorship – from...

We need to help younger women grow and to handle the difficult situations in workplaces
Advertising

press releases

Loading latest Press Releases…
×