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Eskom studies Nersa decision

JOBURG – Following the decision by the National Energy Regulator of South Africa (Nersa) not to grant Eskom the electricity price hike, the beleaguered public electricity entity will study the details of the determination and consult with the shareholder on its (decision) impact.


Nersa announced that it would not grant Eskom the 9.58 percent tariff increase it had requested in the selective reopener for the third multi-year price determination for the period 1 July 2015 to 31 March 2016. Nersa’s chairperson Jacob Modise mentioned the number of complaints it received during the public hearings, and stated that more that 225 rewritten responses and 30 presentations were made from small users and intensive users alike.

Modise said, “At the public hearings the key issues were high prices will result in job losses and capacity in the economy.”

Eskom’s acting CEO Brian Molefe told Nersa during its submission hearings that Eskom needed the extra money to keep Open Cycle Gas Turbines (OCGTs) running otherwise load shedding would be even more prevalent than it was now. He said, “Eskom needs R11 billion per year to power OCGTs, R5.8bn funding per year for short-term contracts with independent power producers, and further funds for an increased environmental levy.”

Following Nersa’s resolution, the acting CEO of Eskom Thava Govender said, “We note the decision made by Nersa, and we will study the details of the determination and consult with the shareholder [the government] before we can comment further on its impact.”

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