The National Energy Regulator of South Africa (Nersa) did not approve Eskom’s application for a 25.3% tariff hike for 2015/16 at its meeting on Wednesday and instead instituted a fast-track public-consultation process, which would culminate in a determination by June 29.

Spokesperson Charles Hlebela told Engineering News Online that Nersa would entertain written comments on Eskom’s application until June 15. It would also host public hearings in Gauteng on June 23 and 24 and would announce its final decision on June 29.

Eskom had applied for a selective reopening of the final three years of the third multi-year price determination (MYPD3) decision, which began on April 1, 2013 and will continue until March 31, 2018.

Through the application, the utility was seeking approval to increase its 2015/16 tariffs to 25.3%, inclusive of the 12.69% already granted for the current financial year.

An additional 10.1% was attributed to the extra costs associated with operating the open-cycle gas turbines (OCGTs) for extended periods, as well as the extension of the short-term power purchase programme (STPPP). The 2.51% balance, meanwhile, related to the 2c/kWh increase in the environmental levy announced by Finance Minister Nhlanhla Nene in February.

For the full three-year period, the cash-strapped utility was seeking R52.8-billion for its additional use of the expensive diesel-fuelled OCGTs (R32.9-billion) and the extension of the STPPP agreements (R19.9-billion) with independent power producers.

Eskom had been granted an extension by Nene until May 15 for the finalisation of its tariff request, which opened the way for the reopener increase to be implemented ahead of the next annual adjustment date of April 1, 2016.

Nersa indicated that it would published Eskom’s MYPD3 selective reopener application on its website and that written comments could be forwarded by email to mypd3@nersa.org.za, or hand-delivered to Kulawula House, 526 Madiba Street, Arcadia, Pretoria, or posted to PO Box 40343, Arcadia, 0083, Pretoria, South Africa.