Posts tagged as Tariffs

Eskom rejects Nersa’s decisions regarding MYPD4 – heads to court; Nersa responds

According to Eskom, the reasons given by the National Energy Regulator of South Africa (Nersa), regarding allowed electricity tariff increases for the next three years, undermine the power utility’s ability to achieve financial sustainability. The utility says the reasons given do not align with the regulator’s own guidelines and will seek urgent financial relief.  Nersa regulates the tariff Eskom may charge for electricity through […]

Response to the application for import tariffs on solar panels

BusinessChief.com reports that SegenSolar, a southern African subsidiary of the UK’s Segen group, has offered an opinion on South Africa’s proposed introduction of tariffs on all imported crystaline silicon photovoltaic (PV) solar panels. On 29 March 2019, the International Trade Administration Commission of South Africa published an application proposing the introduction of tariffs on all […]

On the brink of a death spiral

With debt approaching R450-billion and an operating deficit of R20,7-billion for the 2018/2019 financial year, and the utility being unable to cover its operational and debt-servicing costs with revenue from sales of electricity, Eskom is on the brink of a death spiral. This is the implication from the figures presented at Eskom’s recent Integrated Results […]

Proposed IPP “renegotiations” will threaten green energy investments and job creation

The recent stance by Public Enterprises Minister Pravin Gordhan, as reported in the Business Day, to “renegotiate” contracts with companies which won the first two rounds of South Africa’s renewable energy procurement programme (REIPPPP) will not afford South Africa the opportunity to create value, especially on the job creation front. Eskom’s current load-shedding crisis costs […]

Renewable energy IPP re-negotiation a clear breach of contract

The re-negotiation of terms with successful bidders of the first two rounds of South Africa’s Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) would be a clear breach of contract and damaging to investor confidence says the South African Wind Energy Association (SAWEA) – an industry body which represents the interests of the majority of […]

BUSA responds to Eskom’s latest tariff increase application

Using the established multi-year price determination (MYPD) application system, Eskom has applied to the national energy regulator, Nersa, for tariff increases in excess of three-times the current inflation rate for the next three successive years. In response, Business Unity South Africa (BUSA) has made the following submission to Nersa regarding the power utility’s fourth multi-year price […]

How to deal with Eskom’s ever-rising electricity tariffs

. Eskom has applied to the National Energy Regulator of South Africa (NERSA) for a 15% tariff increase from 1 April 2019 for three consecutive years compounded, on top of a 4,5% RCA price increase already awarded by NERSA for this date, and further RCA applications in the pipeline. The power utility is facing dire […]

Eskom engages stakeholders on its revenue application 

Eskom has explained the power utility’s rationale for its average annual electricity increase application of 15% for three years under the fourth Multi-Year Price Determination (MYPD4) and Regulatory Clearing Account (RCA) balance application for 2018 to the National Energy Regulator of South Africa (NERSA). The presentation was made to stakeholders attending the Cape Town leg […]

Eskom claims R762-billion over the next three years

The National Energy Regulator (Nersa) has received Eskom’s Third Multi-Year Price Determination (MYPD3) Regulatory Clearing Account (RCA) Year 5 (2017/18) application, totalling R21,6-billion, as well as the Fourth Multi-Year Price Determination (MYPD4) revenue application, totalling R762-billion (R219-billion, R252-billion and R291-billion for 2019/20, 2020/21 and 2021/22 financial years, respectively). In February 2013, Nersa approved a total […]

Electricity tariffs to increase dramatically

The National Energy Regulator of South Africa, Nersa, has approved the liquidation of Eskom’s third mutli-year determination (MYPD3) regulatory clearing account (RCA) balances for the 2014/15, 2015/16 and 2017/18 financial years over a four-year period. On 14 June 2018, the regulator approved that a total RCA balance of R32,69-billion will be recoverable from standard tariff customers, […]