Eskom doubles down on calls for overhaul of electricity pricing system
Eskom CEO Dan Marokane said that the current model was outdated and no longer fit for purpose.
FILE: Eskom's Megawatt Park in Johannesburg. Picture: Eyewitness News
JOHANNESBURG - Eskom has doubled down on calls for a sweeping overhaul of its electricity pricing system as the power utility takes stock of unbundling into three companies of generation, transmission and distribution.
Over the years, Eskom has faced a number of operational and financial challenges which almost brought the business to its knees.
As part of turning the company around, Eskom has asked the national energy regulator to review its current pricing design.
Eskom CEO Dan Marokane said that the current model was outdated and no longer fit for purpose.
"What we are arguing is that we have to find a set of rules that is consistent with the reforms that we want to implement within the electricity sector and this applies to broader issues. The reform and their pace is admirable but we need to have a set of rules that talk to the environment that we are headed towards."
The power utility’s updated retail tarrif plan, which proposes huge price increases for connecting to the electrical grid is still being reviewed by the national energy regulator.
"It shouldn’t be Eskom that’s asking for unbundled tariffs and tariffs that reflect the services that customers are using, it should be the regulator that’s ahead of the game and changing the rules according to the environment that we are headed towards. When we raise it, it looks like we are protecting our monopolistic position. The fact is, these rules were created in a certain environment and now they need to be adjusted."