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Eskom confident Nersa will approve proposed tariff hike

Eskom says it believes it has a strong case for the proposed 16.6 percent tariff increase.

Eskom's chairperson Zola Tsotsi revealed the power utility will be suspending four executives as part of an independent inquiry into the business at Megawatt Park in Johannesburg on 12 March 2015. Picture: Reinart Toerien/EWN
eskom,National Energy Regulator of South Africa NERSA,Nersa hearings
Local

JOHANNESBURG – Eskom says it believes it has a strong case for increased tariffs but if the National Energy Regulator of South Africa (Nersa) turns it down it will be in a tough financial situation.

Public hearings began this week in Cape Town, Port Elizabeth and Durban into the parastatal's application for a 16.6 percent tariff increase to recoup R22.8 billion.

The hearings will end in Johannesburg next month before Nersa makes a decision on whether it will approve the application.

Eskom's Khulu Phasiwe said, “Part of the R22 billion comes from loans we have secured with some of our funders. Whether [or not] the regulator gives us the money back we still have to pay back the money.”

NERSA CANCELS ESKOM'S PUBLIC HEARINGS

Nersa last week cancelled the Eskom public hearings in three provinces due to “a lack of interest”. 

The hearings were cancelled in Durban Nelspruit, Bloemfontein and Polokwane. 

Eskom spokesperson Khulu Phasiwe said, “The regulator said presentations for Bloemfontein, Mpumalanga and Polokwane have been cancelled because of lack of interest in those areas. It must be understood that this is a Nersa process.”

(Edited by Refilwe Pitjeng)

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