The National Energy Regulator of SA (Nersa) says while it understands Eskom's current financial situation, a proposed 15% tariff hike over the next three years is not the solution.
Eskom CEO Phakamani Hadebe told the energy regulator at the start of nationwide public hearings in Cape Town on Monday, that if the price of electricity is not increased over the next three years, the parastatal will struggle to improve its financial position.
Karima Brown spoke to regulator member for piped gas and electricity at Nersa Nomfundo Maseti for more.
The increase in the tariffs is not the solution for the problems faced by Eskom, so Nersa can do what it is mandated to do, only to look at what is reasonable in terms of the costs that are requested by Eskom...and that is based on the legislation that we administer.— Nomfundo Maseti, Regulator member for piped gas and electricity at Nersa
Meanwhile Partner at Mining and Energy Advisory Ted Blom says if Eskom why the utility's proposal is not a good idea.
What you not aware of is that this application is multi faceted and the total is 70%, it is not 15%, in three years it is 15% times three, the 4.41 which has already been granted and the RCA 5 which Eskom has not put a percentage on, they are asking for another 21 billion so that is between 10 and 15% further increase.— Ted Blom, Partner at Mining and Energy Advisory
I think it is unfair to ask people, you and me to pay good money in the hope that Eskom will one day refund us. They will never refund us. They are so far down the tube. 134 000 people are going to lose their jobs if this increase goes through. There is a whole lot of inequities in this whole thing.— Ted Blom, Partner at Mining and Energy Advisory
Click on the link below to hear more from Maseti and Blom....
This article first appeared on 702 : [LISTEN] 'Eskom's proposed tariff increase is not the solution' - Nersa