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Stage 1 load shedding from 4pm, NERSA wants your input on Eskom's proposed 25% hike

MAY 13, 2015
Stage 1 load shedding from 4pm, NERSA wants your input on Eskom's proposed 25% hike

Eskom has announced that it will implement Stage 1 Load Shedding from 4pm this afternoon. In the morning, the power utility had warned that there was a medium chance of load shedding in the afternoon on Wednesday and a high probability for the evening.

Meanhwile, the National Energy Regulator says it will only announce its final decision on Eskom’s application for a 25.3% tariff increase for the current financial year at the end of June.

It should mean that whatever further increase is granted – over and above the earlier granted 12.69% increase – may only be implemented for Eskom’s direct clients later in July and for municipal customers in September.

For the time being the 12.69% increase stands as implemented on April 1 and municipal tariff increases based on that will be implemented on July 1 after being approved by Nersa.

Eskom's selective re-opener application - as it is known seeks to recover R32.9 billion for Open-Cycle Gas Turbine utilisation and a further R19.9 billion for its Short-Term Power Purchase Programme.

Nersa is encouraging members of the public to actively participate in this process by submitting written comments and attending or making oral representation at the public hearings to be held from 23 to 24 June 2015.

Nersa spokesperson, Charles Hlebela, says more information will be available on its website on Tuesday afternoon.

"According to Eskom's application they have asked for a total increase of 25.3% for the 2015/2016 year. If we include the 2.5% increase in the environmental levy and for the 2016/2-17 according to the application the increase will be 3.24% excluding the levy and for 2017/2018 it will be 7.26%" he said.

Eskom’s application was published on its website today (Wednesday), after some confidential sections were removed.??

The public will have 30 days to make submissions* until June 15.

Public hearings will be held for two days around June 24 and Nersa hopes to take a final tariff determination on June 29.

Thereafter Eskom will have to translate the average increase into detailed tariffs that Nersa has to approve before it can be implemented.

Municipalities will have to translate it into their own tariff systems and only after these tariffs have been approved by Nersa, will municipal tariff increases be approved.

*Written comments can be forwarded to [email protected] or hand-delivered to Kulawula House, 526 Madiba Street, Arcadia, Pretoria or posted to PO Box 40343, Arcadia, 0083, Pretoria, South Africa.

The closing date for written comments is June 15 2015 at 16H00.