http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.91Change: -0.03
R/$ = 12.56Change: 0.01
Au 1097.25 $/ozChange: 1.90
Pt 987.00 $/ozChange: 4.00
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Letters Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
May 29, 2008

Nersa settles into deliberation mode after intensive hearing process

Back
Nersa regulator head for electricity Thembani Bukula discusses the public hearings with Engineering News Online (29-05-2008)
 
 
 
Engineering|Africa|CoAL|Diesel|Eskom|Africa|Energy|Diesel
Engineering|Africa|CoAL|Diesel|Eskom|Africa|Energy|
engineering|africa-company|coal|diesel-company|eskom|africa|energy|diesel
© Reuse this After having received more than 370 submissions and counting, and having posed over 150 questions to more than 40 presenters in its now concluded electricity tariff public hearings, the National Energy Regulator of South Africa (Nersa) now has to reach a decision on whether or not to grant an increase to State-owned Eskom by June 18.



The three-day hearings generated by far the most public interest in the regulator's history, regulator member for electricity Thembani Bukula told Engineering News Online on Thursday evening.

This was highlighted by the fact that, despite the closing date for submissions having passed, some were still rolling in - and Nersa had committed to interrogate even the late submissions.

Bukula said that there had been a common theme to many of the presentations, which was that there should be "smoothed" pricing methodology over a five-year period

‘VERY DIFFICULT'

This, however, left Nersa with a conundrum, as Eskom had only applied for a hike for 2008/9, and had only submitted figures and forecasts covering this year, relating to primary energy and demand-side management costs.

"For us to be able to say we can phase this, we need much more than we have been given," Bukula said in a telephone interview from Pretoria.

"We need an application that shows us the projections for the other years, so it's very difficult."

"To really get to the figures and numbers, we need figures and numbers and forecasts and budgets from Eskom to be able to pin it down," stated Bukula.

Nonetheless, he reassured that Nersa was not entirely rudderless: "What is important is that we know where we are," said Bukula. "We have a very good idea of what the price should be in five years and it's a question of plotting the trajectory of where we are and where we have to go to in five years."

"The principal of phasing-in is a principal that the regulator has always applied, and one that we will continue to apply," he added.

POLICY GAPS

Also apparent through the hearings was the overwhelming perception that there were "policy gaps, or policy vacuums that need to be filled" - particularly around pricing.

However, he said that the proposed policy changes that were discussed in Cabinet some four weeks ago did align with the route that Nersa had already taken, of having a price determination over a given period that would help to smooth increases and avoid any price shocks.

Bukula did not subscribe to the view that the people presenting at the hearings had strayed from the subject of the hearings. "Overall, I don't think that there is any misalignment between what the people have presented and the regulatory regime."

DECISION ANNOUNCEMENT

Bukula said that, given the interest shown, Nersa would call a press conference to announce its price increase decision on June 18.

The regulator had originally planned to announce the verdict on June 6, but, given the overwhelming interest, had been forced to extend its schedule.

Eskom has applied for a 60% tariff increase this year after it had been hit by surging coal and diesel costs.


Edited by: Mariaan Webb
Creamer Media Senior Researcher and Deputy Editor Online
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Regulation News
The Portfolio Committee on Energy on Tuesday welcomed the resignation of PetroSA chairperson Nonhlanhla Jiyane, but maintained that the entire PetroSA board should resign and be reconstituted, following months of financial mismanagement. Jiyane’s resignation had...
This eight-page brief is a synopsis of key developments in the electricity industry over the past 12 months, including details of South Africa’s constrained power system; State-owned power utility Eskom’s financial status and tariffs, capacity expansion programme,...
Article contains comments
More
 
 
Latest News
Transnet National Ports Authority CIO Mmutle Lentle
State-owned enterprise Transnet National Ports Authority’s (TNPA’s) new Web-based integrated port management system (IPMS) went live on July 26 at the Port of Durban, with crude oil tanker Colorado being the first vessel to be brought into the port using the new...
South Africa’s automotive industry is not in crisis – but there is a very real danger that inertia could see it regress into lightweight assembly rather than claim its place as a globally competitive vehicle manufacturer. Speaking at the National Localisation Indaba,...
Ahead of the start of construction of the Gibela Rail Transport Consortium’s R1-billion modern manufacturing facility and ancillary supplier business park, in Dunnottar, on the East Rand, the company gathered in excess of 450 aspiring contractors at a sector-specific...
More
 
 
Recent Research Reports
Real Economy Year Book 2015 (PDF Report)
There are very few beacons of hope on South Africa’s economic horizon. Economic growth is weak, unemployment is rising, electricity supply is insufficient to meet demand and/or spur growth, with poor prospects for many of the commodities mined and exported. However,...
Real Economy Insight: Automotive 2015 (PDF Report)
Creamer Media’s Real Economy Year Book comprises separate reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, gold, iron-ore and platinum sectors.
Real Economy Insight: Water 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Construction 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Electricity 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Road and Rail 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
 
 
 
 
 
This Week's Magazine
Meyerton-based steel tank manufacturer Structa Technology is currently rolling out a water infrastructure build programme that supports local municipalities, water utilities, schools, hospitals and clinics. As a member of the Structa Group, Structa Technology proudly...
Alternative funding models could be expected to begin coming to the fore in South Africa’s renewable-energy sector as the market becomes more competitive and domestic development finance institutions (DFIs) begin scaling back their direct involvement in projects....
DIMITRI MARKOULIDES An innovation champion must involve employees in innovation projects and keep them updated to enable them to support and drive innovation and create the future of the business
An innovation champion course that trains executives to manage innovation in their organisations aims to help companies grow revenue streams and tap new markets, says business change management consultancy BMGI South Africa innovation practice lead Dimitri...
Future digital workplaces will require employees to continuously learn new “literacies”, including new media, information and technical skills, to help their company thrive and spur personal growth. Information technology (IT) research firm Gartner, thus, suggests...
Only 25% of large construction projects surveyed in KPMG’s Global Construction Project Owner’s Survey, released in June, were concluded on time and within budget over the last three years. “Every project owner wants predictability when it comes to large projects, and...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks
Subscribe Now for $96 Close
Subscribe Now for $96