http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.87Change: 0.16
R/$ = 10.96Change: 0.09
Au 1239.56 $/ozChange: -5.18
Pt 1259.00 $/ozChange: -11.00
 
 
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 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|Pretoria|Africa|CoAL|Diesel|Eskom|Africa|South Africa|Concluded Electricity Tariff Public Hearings|Electricity|Energy|Thembani Bukula|Diesel
Engineering||Africa|CoAL|Diesel|Eskom|Africa||Energy||
engineering|pretoria|africa-company|coal|diesel-company|eskom|africa|south-africa|concluded-electricity-tariff-public-hearings|electricity|energy|thembani-bukula|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
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
 
Latest News
Updated 36 minutes ago Emerging economies did have the ability to overcome the current difficult economic conditions and slow growth forecast, Brazilian Ambassador Carneiro De Mondonça said on Thursday. Speaking at the South African Chamber of Commerce and Industry (Sacci) 2014 Convention,...
Updated 46 minutes ago Relevant government departments and solar industry stakeholders represented by the South African Photovoltaic Industy Association (Sapvia) are due to meet next week in Kimberley, in the Northern Cape, to decisively bed down an industry “master plan” that would guide...
Small Business Development Minister Lindiwe Zulu
Updated 1 hour 1 minute ago Government could not take responsibility for radical economic transformation and small business development on its own, Small Business Development Minister Lindiwe Zulu asserted on Thursday. Speaking at the South African Chamber of Commerce and Industry (Sacci) 2014...
More
 
 
Recent Research Reports
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
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.
 
 
 
 
 
This Week's Magazine
The broad-based black economic-empowerment (BBBEE) alignment process in the con-struction sector has begun, dur-ing which the sector codes of the Construction Sector Charter Council (CSCC) will be aligned with the revised Codes of Good Practice (CoGP), which come...
It is second time lucky for Toby Venter. Ten years ago he negotiated to buy the Kyalami racetrack, but “the deal did not materialise”.
Environmental solutions company I-Cat started construction work on its R22-million, 1 949 m2 environmentally sustainable office and warehouse facility, commissioned by I-CAT Environmental Solutions, at a launch event in October. The new sustainable I-CAT campus,...
IAN EVANS AirWatch file synchronisation and sharing system was initially designed for a large airline company
Effective file synchronisation and sharing across an organisation’s structures can provide the basis for robust mobile-device and document management while maintaining proper backup, version control and content distribution. These are the lessons learned by complex...
Hotel group Carlson Rezidor currently holds the largest hotel pipeline in Africa with 30 hotels and 6 300 rooms under development. The hotel group develops and operates Radisson Blu in the upper upscale segment and Park Inn by Radisson in the mid-market segment. With...
 
 
 
 
 
 
 
 
 
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