Eskom wants urgent 25% price hike

Eskom made an urgent application to Nersa to increase the electricity tariff by 25.3% for the 2015/2016 financial year, the national energy regulator said on Friday.

This includes the 12.69% price increase that has already been approved by Nersa.

Nersa said in a statement Eskom has now applied to the regulator for the selective reopening of the Third Multi-Year Price Determination (MYPD3) decision for the 2015/2016 to 2017/2018 period.

According to Eskom this is because it requires cost recovery of R32.9bn for Open-Cycle Gas Turbines (OCGTs) and R19.9bn for the Short-Term Power Purchase Programme (STPPP).

Eskom wants a 10.10% selective reopener for OCGTs and STPPP and a 2.51% increase in the environmental levy by 2c/kWh.

Eskom submitted its selective reopener application for consideration by the Energy Regulator last week.

This follows Eskom’s conclusion of its consultation process with the South African Local Government Association (Salga) and National Treasury.

Nersa said in its statement issued on Friday that the energy regulator is considering the application, taking into consideration the urgent need to stabilise the electricity network to avoid a possible total blackout and Eskom’s operational and financial challenges.

News24

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Eskom wants urgent 25% price hike