Cape Town - The National Energy Regulator of South Africa (Nersa) on Wednesday approved the timelines for processing an application by Eskom to hike electricity prices by a further 12.61 percent.
The decision on whether Nersa would grant Eskom the price increase would be made on June 29 after a public consultation process.
Eskom has asked for a selective reopening of the third multi-year price determination (MYPD) to recover, among others, money spent on diesel costs and the short-term buying of power from cogenerators.
Eskom is seeking a 25.3 percent increase for the 2015/16 to 2017/18 period, but that would be inclusive of the 12.69 percent tariff hike which came into effect on April 1 this year.
“Eskom’s selective reopener application requires cost recovery of R32,9bn for Open-Cycle Gas Turbine (OCGT) utilisation, R19,9bn for the Short-Term Power Purchase Programme (STPPP) and the impact of the increase in environmental levy,” Nersa said in a statement.
Eskom’s application was published on the Nersa website on Wednesday for stakeholder comments.
The closing date for the submission of comment is June 15. This would be followed by public hearings after which Nersa will make its decision.
“Nersa would like to encourage stakeholders and the public to actively participate in this process by submitting written comments and attending or making oral representation at the public hearings to be held from 23 to 24 June 2015,” it said.
“Written comments can be forwarded to [email protected] or hand-delivered to Kulawula House, 526 Madiba Street, Arcadia, Pretoria or posted to PO Box 40343, Arcadia, 0083, Pretoria, South Africa.”
ANA