IPP contracts will not hike Eskom pricing to consumers - energy expert

News24 reports that SA Renewable Energy Council (Sarec) says Eskom's refusal to sign power purchasing agreements (PPAs) with 26 Department of Energy (DoE) approved renewable energy plants will jeopardise 15 000 jobs.

It also reports that former Eskom CEO Brian Molefe decided not to sign the PPAs in 2016 as part of the Independent Power Producer Procurement programme (REIPPP) because it is too expensive and will affect consumers.

Energy expert, Ted Blom, says the argument on pricing is fallacious.

The current Eskom pricing already includes provision for more expensive initial bids of IPP session.

Ted Blom, energy expert

It doesn't affect Eskom's balance sheet at all.

Ted Blom, energy expert

It doesn't affect Eskom because they have already being remunerated to the extend of the contribution from the IPP. It's already built from the current price.

Ted Blom, energy expert

This article first appeared on 702 : IPP contracts will not hike Eskom pricing to consumers - energy expert


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