OUTA speaks out on NERSA decision

first_img AFD and Eskom commit to a competitive electricity sector Commenting on the National Energy Regulator of South Africa’s (NERSA) decision around Eskom’s request for tariff hikes, the Organisation Undoing Tax Abuse (OUTA) believes that Eskom has received “more than it deserves”. “It’s a steep increase, 14% is huge. It’s going to hit customers hard and the issue of failure to pay electricity bills will be exacerbated,” Chauke noted.Ultimately, #NERSA’s 9.41% tariff increase which has been granted to Eskom serves to rewards corruption at the expense of ordinary South Africans. pic.twitter.com/p4kuxzlBIb— Herman Mashaba (@HermanMashaba) March 7, 2019 Generation TAGSNersaOUTASouth Africatariffs Previous articleEskom notes NERSA decision on MYPD4 and RCA 2017/18Next article2019 promises to be good for US energy storage market Guest ContributorThe views expressed in this article by the author are not necessarily those of the publishers and/or association partners. While every effort is made to ensure accuracy, the publisher and editors cannot be held responsible for any inaccurate information supplied and/or published. RELATED ARTICLESMORE FROM AUTHOR The organisation had objected to the tariff hikes,submitting objections to the regulator during the public participation process. Low carbon, solar future could increase jobs in the future – SAPVIA Eskom had requested NERSA for increases of 15% a year, then upped this to 17% for 2019/20. Read more: Regulator gives reasons for approving Eskom’s RCA Eskom tariff increase UNDP China, CCIEE launch report to facilitate low-carbon developmentcenter_img On the other hand, OUTA has welcomed NERSA’s decision toreview Eskom’s costs, efficiency and performance, its undertaking toindependently value Eskom’s Regulatory Asset Base (RAB), to conduct performanceaudits on the power stations. NERSA said it is considering investigating Eskom’s governance failures andadjusting prices accordingly based on this or the outcome of investigations byother authorities. “We need government to work in an integrated manner, we needa holistic direction from either the Presidency or the Department of Energy.Government is talking restructuring of Eskom but if it was serious about thisit should have interacted with NERSA, without compromising the independence ofNERSA, which should have allowed the prices for the two outer years to bereassessed in the light of the effects of the restructuring,” says RonaldChauke, OUTA’s portfolio manager on energy. NERSA has approved Eskom’s request for tariff hikes to 9.41%, 8.10% and 5.22% price increases for years 2019/20 to 2021/22 respectively. Read more about NERSA’s decision here.#Eskom tariff increases since 2007#Nersa pic.twitter.com/pynu60Cpgh— Mzansi Facts (@mzansi_facts) March 7, 2019 Finance and Policy BRICS The organisation stated that government could have givenNERSA an indication of what that bailout will be spent on and details of therestructuring, so NERSA could consider this in the pricing application. OUTA noted that this is also a decision which reflects the lack of a coherent strategy by government on Eskom’s future and the pricing path, as NERSA apparently didn’t consider the effect of the R23 billion-a-year bailout over the next three years. Image credit: Stock last_img read more

Read More »