South Africans react to NERSA decision with celebration

JUNE 29, 2015

Eskom's request for an additional increase in electricity prices has been declined by the National Energy Regulator of SA (Nersa) on Monday - sparking celebrations by South Africans on social media sites.

Still one user warned; "NERSA has rejected Eskom's price increase. Can I take this opportunity to coin the phrase "Retaliatory load shedding"?

Making the announcement in Pretoria before assembled media and officials, chairperson Jacob Modise said there were several reasons as to why Nersa has turned down the application.

"Some of the commissioning dates have lapsed. No information has been provided by Eskom regarding the new commissioning dates regarding the application. As a result, the energy regulator is unable to assess the required usage and financial impact of the open cycle gas turbines," Modise said.

"The impact of the above mentioned changes cannot be considered in isolation in terms of other factors such as savings associated with the operations and or delay of Medupi, Kusile [and other power plants]."

Eskom asked Nersa to approve a 9.58% price hike. This would have brought the total increase this year to over 22% after prices also rose in April.

Eskom, which imposes rolling blackouts on an almost daily basis due to inadequate electricity capacity, is facing a funding gap to 2018 of up to R200 bn.

Here is what some of you had to say;

 

---additional reporting, News24wire