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Jul 10, 2007

Nersa sets Dec 20 for Eskom tariff verdict

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Africa|Eskom|Gas|Petroleum|Africa|Energy
Africa|Eskom|Gas|Petroleum|Africa|Energy
africa-company|eskom|gas|petroleum|africa|energy
South Africans will hear on December 20 how much more they will have to pay for electricity in 2008, when the national energy regulator hands down its final decision.

The National Energy Regulator of South Africa (Nersa) spokesperson Nhlanhla Cebekhulu said on Tuesday that Nersa, the body regulating the electricity, piped-gas and petroleum pipeline industries, would make its decision on State-owned Eskom’s proposed 18% price hike public on December 20.

Nersa was finalising a preliminary report on the proposed electricity increase, which would pave the way for the public comment period to get under way.

Nersa regulates the country’s electricity prices, which are among the world’s lowest, by a three-year multiyear price determination (MYPD).

In February 2006, the regulator approved a 5,1% price increase for 2006, 5,7% for 2007, and 6,2% for 2008.

Cebekhulu added that Nersa had also completed its first stakeholder consultation meeting on the second MYPD, a process that kicked off late last year.

He said that Nersa was now consolidating reports from the stakeholder meeting.

Prior to the introduction of the MYPD, the electricity prices used a rate-and-return methodology.
Edited by: Liezel Hill

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