The resignation of the National Energy Regulator of SA (Nersa) CEO Phindile Baleni will lead to hikes in the electricity price, the Democratic Alliance said on Tuesday.<\/p>\n
“Sadly, Ms Baleni’s resignation now heightens the possibility of a far more compliant Nersa CEO being installed, an appointment that will surely mean further electricity price hikes for consumers,” DA MP Gordon Mackay said in a statement.<\/p>\n
“Under Ms Baleni’s leadership Nersa has remained a steadfast defender of the South African consumer, obstructing Eskom from bank-rolling its mismanagement at our expense.”<\/p>\n
Last month, crisis-hit Eskom said needed to raise tariffs in order to assist the company in recovering some of its operating costs.<\/p>\n
\u201cWe don\u2019t have the right tariff \u2013 in that it does not allow us to recover all our cost,\u201d said Eskom CEO, Tshediso Matona.<\/p>\n
\u201cOur business model does not allow that to happen. There is an acceptance that going forward, we need to address that issue.\u201d<\/p>\n
Initial reports suggested that Baleni’s resignation was due to political interference at Nersa which aimed to water down the regulator’s tough stance on Eskom, he said.<\/p>\n
“It is felt that Ms Baleni has been a major stumbling block in allowing Eskom to recover increasing operational costs via the consumer.”<\/p>\n
On Tuesday, provincial government announced that Baleni had been appointed director general in Gauteng premier David Makhura’s office.<\/p>\n
“Ms Baleni brings a wealth of experience in senior management leadership and in the management of complex and diverse projects,” the Gauteng government said in a statement.<\/p>\n
On Monday, the energy ministry said Baleni resigned from her position to “pursue other interests”.<\/p>\n
Consumers will be hit with a 12.69% electricity tariff hike in April this year, the National Energy Regulator of SA (Nersa) announced in October 2014.<\/p>\n
That increase is 4.7% above the 8% tariff increase originally agreed to for the year to March 2016.<\/p>\n
In 2013, Nersa said that Eskom could only raise tariffs 8% a year for the five years to 2018, instead of 16% requested by the power utility.<\/p>\n
However, the regulator noted that Eskom\u2019s costs exceeded projections for the three years to 2013, enabling the company impose higher tariffs.<\/p>\n
Eskom wants to raise electricity prices<\/strong><\/a><\/p>\n Eskom wants to charge more for peak demand<\/strong><\/a><\/p>\n We\u2019re in a financial crisis: Eskom<\/strong><\/a><\/p>\n