Jul 19, 2012
Eskom to finalise tariff application by AugustBack
Eskom|Reuters|Africa|South Africa|Electricity|Electricity Supply Security|Power Producer|Brian Dames
© 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
Other Electricity News
Updated 9 minutes ago Transnet Port Terminals (TPT) has gone out to tender for two electrically driven rail-mounted bulk handling grab-type ship unloaders to replace the existing Caillard grab ship loaders on berths 701 and 702 at the dry bulk terminal in the Port of Richards Bay,...
Updated 36 minutes ago South African missile, unmanned air vehicle and space technology company Denel Dynamics has determined that an innovation in its annual engineering internship programme, introduced this year, has been a great success. This was the fifth year the company has run the...
Updated 1 hour 27 minutes ago The Johannesburg Stock Exchange said it will pause trade for five minutes at 11 a.m. (0900 GMT) on Friday to mark the passing of former President Nelson Mandela. Mandela died peacefully at home at the age of 95 on Thursday after months of fighting a lung infection.
Recent Research Reports
Defence 2013: A review of South Africa's defence industry (PDF Report)
Creamer Media’s 2013 Defence Report examines South Africa’s defence industry, with particular focus on the key players in the sector, the innovations that have come out of the defence sector, local and export demand, South Africa’s controversial...
Road and Rail 2013: A review of South Africa's road and rail infrastructure (PDF Report)
Creamer Media’s Road and Rail 2013 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...
Liquid Fuels 2013 (PDF Report)
Creamer Media’s 2013 Liquid Fuels report examines South Africa’s liquid fuels market, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing,...
Projects in Progress - Second Edition (PDF Report)
Creamer Media’s second Projects in Progress supplement considers some of the major project developments under way, including high-profile energy and transport projects, as well as a few of the lower-profile public and private developments. What remains apparent is...
Water 2013: A review of South Africa’s water sector (PDF Report)
Creamer Media’s Water 2013 report considers the aforementioned issues, not only in the South African context, but also in the African and global context, and examines the issues of water and sanitation, water quality and the demand for water, among others.
Canadian Mining Roundup for June 2013 (PDF Report)
The June 2013 roundup includes details of the development of TSX-V-listed Aldridge Minerals’ flagship Yenipazar polymetallic project, in Turkey; the Canadian Nuclear Safety Commission’s renewal of Cameco’s uranium mining licence pertaining to the Cigar Lake...
This Week's Magazine
Mitsubishi Motors South Africa (MMSA) has introduced a 4x2 derivative of its Pajero Sport sports-utility vehicle (SUV), which will give it access to a substantial slice of the full-size SUV market, where it will compete with the likes of the Ford Everest, Chevrolet...
South African Energy Minister Ben Martins has affirmed that the government wants the country to be globally competitive in the nuclear sector. "Our responsibility has always been ... to ensure that, in nuclear energy, South Africa can compete with the rest of the...
Mercedes-Benz South Africa (MBSA) president and CEO Dr Martin Zimmermann describes the new S-Class as “a special place to be”, with the car creating a sense of “wellness” once you are seated inside the German brand’s flagship model. It is difficult to argue...
Water scarcity and water-quality issues are broadly recognised and understood in most political, business and civil organisations in South Africa, but solving water issues will require wide and continuous action in catchments and municipalities by organisations and...
Work is well under way on the R212-million Imvutshane dam, 30 km north-west of Stanger, in KwaZulu-Natal, which is a key link in supplying people in rural Maphumulo with a reliable source of safe drinking water.