Categories: Eskom

by Peter

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Categories: Eskom

by Peter

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Mo Anton Eberhard commented: “Just to be clear, a VERY small proportion of this is attributable to independent power producers. Most of it is @Eskom_SA ’s burgeoning debt (due to runaway costs building its mega coal power stations) plus above inflation coal and payroll costs.”
Eskom applies for 15% tariff increase <www.businesslive.co.za/bd/national/2018-10-22-eskom-applies-for-15-tariff-increase/>The utility has submitted its price application to the National Energy Regulator of SA 22 OCTOBER 2018 – 14:15 CAROL PATON UPDATED 22 OCTOBER 2018 – 18:05 [image: Picture: REUTERS] <lh3.googleusercontent.com/MFk2ntcOyRD5Y5Wk63i1fUBmPLukoHkPvUIk3N_VnQ7N3fypp017CoIn4WpYORYKvJKiv7Tr8FuGw-eaykq_GIyTvEonSjtJYQ=s1200> Picture: REUTERS
Eskom has asked the National Energy Regulator of SA (Nersa) for a 15% tariff increase for the next three years, beginning 2019-2020, the utility announced on Friday.
While Nersa, which will hold public hearings and evaluate the application, seldom grants Eskom its full request, Eskom’s application indicates that double-digit electricity increases will very likely continue into the next three years.
Electricity prices rose 350% in the 10 years prior to 2017, compared to inflation which was 74% over the period.
High electricity prices are viewed as a drag on economic growth and have been a key driver of inflation. With the SA Reserve Bank forecasting inflation to rise in the short-term, an Eskom tariff that outstrips inflation may lead to a rates increase in 2019.
Nersa evaluates Eskom’s tariff application according to a methodology that allows the company to claim a return within certain limits and scrutinises costs to ensure they are justifiable. The Nersa methodology also allows Eskom to claw-back justifiable costs retrospectively by adding them to tariffs for future years.
For the next three years Eskom will be permitted to clawback an additional R8bn from customers as a result of the adjudication of the regulatory clearing account (RCA) for the years 2014-2015, 2015-2016 and 2016-2017.
On Eskom’s current tariff this amounts to approximately an additional 4.41%, which will be added to the tariff. That means that should Eskom be granted its price application in full, tariffs in 2019-2020 will rise 15% plus the 4.4% allowed for by the RCA.
Eskom is in deep financial trouble with falling sales, a declining ability to meet debt obligations and tariffs which are not cost-reflective. With debt of more than R350bn and rising it faces and interest bill of R215bn over the next five years.

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Business Report 1 July 2012. Optimal Energy chief executive Kobus Meiring is a disappointed man. The company is the developer of South Africa’s electric car but it officially closed on Friday with the loss of about 60 jobs. This follows its failure to get further funding from the government and the Industrial Development Corporation (IDC)... http://www.iol.co.za/business/business-news/why-sa-s-electric-car-is-not-going-anywhere-1.1331580#.T_E37xcjGq8

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