Time to comment on power price hikes cut

THE National Energy Regulator of South Africa (Nersa) has moved public hearings on Eskom’s requested 33% tariff hike forward by about two weeks – providing objectors with substantially less preparation time‚ energy expert Ted Blom said.

“Eskom’s dire financial situation became one of South Africa’s worst-kept secrets when the utility was thrown a 30-day lifeline in February by the Government Employee Pension Fund – without following proper governance procedures,” Blom‚ a partner at Mining and Energy Advisors‚ said yesterday.

“Should Nersa grant Eskom the R66-billion claimed for past losses‚ it will immediately translate to a 30% hike over and above the 20-30% hike Eskom is believed to be targeting through their mid-year tariff increase application before the end of 2018.”

Blom said overstaffing at Eskom‚ together with abysmal productivity and cost controls‚ had seen its tariffs escalate by over 500% in the past 10 years and a capital build programme overspend by more than 500% with six-year delays.

Eskom also had a massive and growing surplus of electricity. “It appears something will have to break before the ruling party will take remedial action.”

Blom has relaunched a public petition to get concerned electricity consumers to provide him with a mandate to contest the increases. – TimesLIVE