Jul 19, 2012
Eskom to finalise tariff application by AugustBack
Construction|Engineering|SECURITY|Africa|Eskom|Reuters|Security|Africa|South Africa|Security|Electricity|Electricity Supply Security|Energy|Power Producer|Security|Brian Dames|Power|Security
© Reuse this
He told Engineering News Online that the utility was in the process of finalising its third multiyear price determination (MYPD). It recently submitted its draft application to the National Treasury and the South African Local Government Association for comment.
The State-owned company previously reported that current tariffs were not sufficient to fund its build programme, which was pivotal in ensuring electricity supply security in South Africa.
However, Dames pointed out that various factor had to be considered in determining South Africa’s electricity tariffs going forward.
“We are very conscious of the impact of tariffs on job creation and economic growth in South Africa. But we must also be conscious of the fact that we need to invest in capacity. Not just us [Eskom], but the broader industry and private sector as well,” he noted.
A confidential document obtained by newswire Reuters last week, stated that Eskom had applied to raise tariffs by 14.6% a year over five years. The tariff increases could reach a yearly average of 19% over the same period, depending on if the government implemented a carbon tax or built new plants beyond those currently under construction, the Reuters story stated.
Eskom was granted three years of 25% power tariff hikes in 2010.
Under the second MYPD, Nersa approved average electricity price increases of 25% for the period from April 1, 2010, to March 31, 2013. However, earlier this year, the regulator announced that Eskom’s tariff increase was reduced to 16% for 2012/13, rather than the previously approved 25.9%.
Edited by: Mariaan Webb© Reuse this Comment Guidelines (150 word limit)
Other Electricity News
Energy efficient commercial buildings in South Africa delivered better returns than non-energy efficient buildings, a new study by the Investment Property Databank and the Green Building Council of South Africa has shown. The study, which investigated 461 commercial...
Article contains comments
The National Energy Regulator of South Africa (Nersa) will release a consultation paper in February next year outlining the possible regulatory framework for “distributed power generation” in South Africa, including how “prosumers” could be empowered to feed surplus...
Despite apparent legitimate reasoning behind State-owned power utility Eskom’s electricity tariff increases, increased costs would undoubtedly hurt those in the lower portion of South Africa’s income distribution, consulting firm Frost & Sullivan Africa energy and...
Updated 4 hours ago South Africa signed a nuclear power cooperation deal with Russia on Monday that paves the way for the building of up to 9.6 GW of nuclear power based on Russian technology by 2030, both sides said. The surprise announcement from the sidelines of a International...
Updated 4 hours ago The Mozambican port and rail authorities plan to invest around $3-billion in the coming few years to raise yearly throughput at the Maputo port to between 40-million and 50-million tons by 2020 and to migrate additional cargo from road to rail. Speaking at the...
Updated 6 hours ago A series of unfortunate events led to Johannesburg and surrounding areas experiencing significant water shortages over the past week, City of Johannesburg mayoral committee member for development planning and urban management Roslynn Greeff said at a media briefing...
Recent Research Reports
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
Real Economy Insight: Road and Rail 2014 (PDF Report)
This six-page brief covers key developments in the road and rail industries over the past 12 months, including details of South Africa’s road and rail network and prospects for both sectors.
This Week's Magazine
While Ekurhuleni-based transformer manufacturer Reliable Transformers currently designs, manufactures and tests its products according to the SANS 780 specifications for distribution transformers and other applicable transformer specifications, it is working towards...
Global endpoint security solutions company Kaspersky Lab has introduced new measures to prevent cyber criminals from accessing sensitive data, alongside its malware-signature and heuristic device analysis detection methods. Threats to mobile devices have increased...
To ensure uptake and a positive impact, Wireless Fidelity (Wi-Fi) networks in cities must be provided at schools, community centres and commercial centres to enable citizens and government to access information that will improve access to and delivery of services....
Eco-estate Monaghan Farm, located near Lanseria airport, north-west of Johannesburg, has taken a new approach to modern living and sustainability with its 517 ha development, dedicated to farm living.
Forklift and lift-truck distributor Goscor Lift Hi-Reach launched the Genie SX-180, the tallest self-propelled super boom in Africa, in Johannesburg last month. “As the official distributor of the well-known Genie range of equipment in Southern Africa, we are pleased...