Last day for tariff input

Public hearings on increases will be held across provinces

THE public has until tomorrow to comment on Eskom’s application to increase its tariffs.

Eskom has applied for a substantial increase in tariffs to recover a shortfall in sales projections. The proposed increase is 15% for direct Eskom customers and 17% to 20% for municipal customers.

This increase will be per year, to 2022.

The National Energy Regulator (Nersa) has asked for input from the public before granting any increase. Public hearings will also be conducted early next year in all provinces.

In Eskom’s application for the increase, the parastatal says it has made every effort to implement measures that move towards more efficient processes to manage operational costs.

“Capital expenditure grows with focus on completing new build projects, maintaining existing power stations, strengthening and expanding network businesses. It is clarified that none of the generation units will be decommissioned in this period.”

Eskom says a cash shortfall of approximately R25 billion relating to debt service commitments exists in each of the 2019/20 and 2020/21 financial years.

“In this revenue application, Eskom will only be able to cover the debt service commitments in the 2021/22 financial year. This is a significant sacrifice being made by Eskom in a bid to allow for the economy and customers to benefit through this phased approach.

“This revenue application of over R750bn requires a thorough analysis by the Energy Regulator and reasons for decisions that are well supported by facts and reasoning.”

The Energy Expert Coalition has created a portal on its website that keeps a record of all public participation and is linked directly to Nersa’s official channel where the public can submit their comments.

Top energy adviser Ted Blom will be representing members of the public at the hearings.

“If you have already had your say