Nersa still not satisfied with Eskom’s tariff request
THE National Energy Regulator of SA (Nersa) says it is not yet satisfied with Eskom’s rationale that it needs to increase tariffs to recoup monies.
Yesterday was the second and final day of public hearings in Cape Town, with the next stop in Port Elizabeth.
The session yesterday ended earlier than expected due to a poor turnout.
Nersa is holding public hearings in all nine provinces on Eskom’s Regulatory Clearing Account application for 2018/19 until February 24.
Eskom is asking for over R27 billion from Nersa, in an application that was received last year to cover costs the power utility had incurred.
Eskom is facing financial challenges, with a debt of more than R400bn and argued that the approved increases of 9.41% for 2019-2020, 8.10% for 2020-2021 and 5.22% for 20212022, instead of the requested 16%, would not suffice.
Groups from various civil society organisations and community-based movements had the opportunity to share their thoughts on the proposed tariff hikes.
Nersa chairperson Nomfundo Maseti said she was pleased with the attendance but was yet to hear substantial arguments from the power utility.
“We couldn’t get the clarity that we needed with respect to their application.
“They have undertaken to get clarity in forthcoming hearings that we will have in various cities.
“They promised to bring relevant managers to talk about the issues we have asked for clarity on and other issues that are part of the application.”
She said those who came to share their views on the matter were vital to Nersa’s decision-making process.
“These are the people that shape the decision made by Nersa.
“They shape the quality of the decision that we have to take as Nersa because we need to understand the impact of the cost that will be on the communities and young people.”
Samkelisiwe Madwayi from the Inkanyezi Foundation said they opposed the increase and she was honoured to be able to share her thoughts on such a critical matter.
“As a women’s organisation, we are struggling to validate the costs.
“We need evidence from them, we need Eskom to show us how they incurred these costs.
“This is why we are vehemently opposing the application.”
She said they had written to Nersa and voiced their concerns on behalf of their and other women’s organisations.
“This is a critical year for women’s organisations as South Africa continues to be a gender-disadvantaged country.
“Irresponsible tariffs not backed by due diligence takes us back in the struggle of emancipating women.
“We are experiencing load shedding and socially disadvantaged women are badly hit by load shedding.
“If they lose food due to load shedding, it is ruined.”