http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 15.11Change: -0.21
R/$ = 13.43Change: -0.15
Au 1138.18 $/ozChange: -2.87
Pt 1008.00 $/ozChange: 0.00
 
 
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 Electricity News
Article contains comments
South Africa is set to play host to Africa’s first international renewable-energy conference, providing a platform to showcase the continent’s numerous renewable-energy projects to high-level international delegates, in Cape Town, from October 4 to 7. The South...
Article contains comments
Article contains comments
More
 
 
Latest News
Updated 7 minutes ago The South African Municipal Workers’ Union (SAMWU) has signed a salary agreement with employer body, the South African Local Government Association (SALGA), the union said on Wednesday. ”The signing comes after rigorous mandate taking process to members which...
Updated 19 minutes ago South African Airlines is close to finalising the cancellation of a contract to supply ten Airbus A320 aircraft as part of plans to get the national carrier back to profitability, its CFO said on Wednesday. "We need to get the final approval from the board who can...
Updated 1 hour 45 minutes ago The Barclays Purchasing Managers’ Index (PMI), which declined by almost 5% month-on-month in August, highlights “renewed pessimism” in the economy, the Steel and Engineering Industries Federation of Southern Africa (Seifsa) said on Wednesday. Seifsa chief economist...
More
 
 
Recent Research Reports
Road and Rail 2015: A review of South Africa's road and rail sectors (PDF Report)
Creamer Media’s Road and Rail 2015 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 infrastructure and network, the funding and maintenance of these respective networks, and...
Defence 2015: A review of South Africa's defence sector (PDF Report)
Creamer Media’s Coal 2015 report examines South Africa’s coal industry with regards to the business environment, the key participants in the sector, local demand, export sales and coal logistics, projects being undertaken by the large and smaller participants in the...
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.
 
 
 
 
 
This Week's Magazine
Training company The Intelligence Transfer Centre will host the fourth yearly Environmental Crimes Conference at the Indaba Hotel, in Fourways, Johannesburg between September 9 and 10. Confirmed key regulatory bodies that will attend the event include the Department...
The government of Egypt has said it is ready to provide technical assistance to Malawi in the development of the Shire–Zambezi waterway, which is designed to link landlocked Malawi to the Indian Ocean by opening the two rivers for navigation. Egyptian ambassador to...
Kenya is finally set to start building a new multipurpose petroleum pipeline, after securing a $350-loan from a consortium of banks, including South Africa's Rand Merchant Bank. The other banks in the consortium are the Cooperative Bank of Kenya, Citibank's Kenya...
MARAIS VAN HEERDEN The owner/operator should be able to view the overall project design and progress made at any time
Three-dimensional (3D) engineering design models can now be viewed on tablets, which enable stakeholders to view the design without having to buy the design software used to create it, says engineering design firm 3DDraughting executive Marais van Heerden. The...
Ford’s newest offering in a long list of newcomers to the local market in the last two years is the B-Max multi-activity vehicle (MAV). The B-Max will play in the so called B-MAV segment, or the small MAV segment, currently dominated by Toyota’s Avanza, which sells...
 
 
 
 
 
 
 
 
 
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