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South Africa: Eskom requests electricity price rise

Eskom has handed in a request to increase electricity tariffs, the National Energy Regulator of SA (Nersa) said.
"I can confirm that this (Wednesday) morning we received documentation from Eskom," said Nersa Chief Executive Smunda Mokoena.

He said the regulator would first have to study the report to "see what it is Eskom is asking for".

Nersa and Eskom had held discussions and the national utility had pointed out rising costs and a funding need for its capital expansion programme estimated to cost around R150-billion.

According to reports last month, Eskom's MD of resources and strategy, Steve Lennon, said the parastatal would ask Nersa for an 18 percent increase.

But Nersa board member Ethèl Teljeur said the request for an 18 percent increase was not part of the discussions between the two parties.

"There is no such thing as negotiating with Eskom," Teljeur said, adding that the regulator would determine the eventual increase with input from Eskom and the public.

"We are a regulator to regulate...not negotiate," she said.

Mokoena said if the process was followed, the regulator might adjust the three-year price determination.

The regulator has approved a R66.2-billion Project Alpha, which would see the coal fired power station generating 4500 megawatts of power built in the area of Lephalele in Limpopo.

It has also approved a licence for two more diesel and two kerosene power stations in Mossel Bay and Antlantis respectively.

Additional information: News courtesy
News date: 03/05/2007

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Comments and remarks to Wim Jonker Klunne

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