LOAD shedding could be back this winter as a result of energy regulator Nersa’s decision to only give Eskom half of its requested tariff increase.
Eskom CEO, Brian Molefe, said the decision to only approve a 9.4 per cent electricity price increase doesn’t help Eskom’s financial sustainability and “will have operational consequences”.
Nersa did not grant Eskom the R22.8-billion variance it requested for the costs incurred in the production of electricity in the 2013/14 financial year. Instead, only an amount of R11.241bn was approved.
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This amounts to a 9.4 per cent tariff increase for the 2016/17 financial year instead of the 16.6 per cent hike Eskom asked for.
“We will do our best to minimise the risk of load shedding, striking a balance with Eskom’s already depleted balance sheet,” Molefe said in a statement.
“We note with concern the decision on open cycle gas turbines (OCGTs), which will guide Eskom’s operations in the future in terms of balancing the energy supply and demand in a bid to avoid load shedding,” he said.
Molefe said Eskom had reduced its diesel usage in recent months and improved its maintenance plan. “However, we continue to run a constrained grid,” he said.
“OCGTs are part of our emergency portfolio and have been used in the past to avoid or limit load shedding with the understanding that we can recover these costs. The recovery of diesel costs is now seriously in question with Nersa’s current decision.”
Eskom said that in terms of the Municipal Finance Management Act, the Public Enterprises Minister, Lynne Brown, will table the municipal increases in parliament on or before March 15.
