banner

MTER
741 Views

Eskom seeks to recoup R38bn through tariff hikes


Johannesburg – State power utility Eskom has asked the national energy regulator Nersa for permission to recoup R38bn of costs incurred in its 2014 financial year through higher electricity tariffs starting April 1 next year.

“If approved, the outcome of this application is expected to impact the electricity price commencing in 2016-17,” acting chairperson Ben Ngubane said in the company’s annual report, released on Tuesday.

The regulator in June rejected a request by Eskom, which is struggling to meet demand in Africa’s most-industrialised economy, to raise prices by as much as 25% for the year to March 2016. The additional funds would have been used to buy power from independent producers and for diesel to fuel generators the utility uses to curb scheduled blackouts.

Electricity prices in South Africa have almost quadrupled since 2007, when the country first had power shortages. Scheduled supply cuts, known as load shedding, have taken place almost once every two days on average this year.

In October, the regulator gave Eskom permission to raise tariffs by an average 13% from April 1, 2015, more than the 8% initially approved, to help the utility recover R7.8bn of unbudgeted costs for the three years through March 2013. The company had applied to recover R18.4bn.

Eskom has struggled to finance new generating capacity and is battling to meet demand after delays in building new power stations and as aging plants suffer from breakdowns.

Kusile, which will have 4 800 megawatts of capacity, making it Africa’s biggest coal-fired power plant when completed, will be fully operational in 2021, while the 4 764-megawatt Medupi facility will be ready in 2019. Both were to be completed by 2018, the company said in 2012.

Source: fin24


Follow Alive2Green on Social Media
TwitterFacebookLinkedInGoogle +

Recently Published

a2g African Construction
»

Learning and Networking for the Construction Industry

The African Construction and Totally Concrete Expo returns to ...

a2g manufacturing Indaba
»

Developing New Manufacturers Advancement in machine learning and industrial innovations vital to boosting South Africa’s manufacturing sector.

 Following the 2008 financial crisis, which caused many industrial ...

Smart City
»

Smart Cities Redefining Property Developments

Some of South Africa’s biggest mixed-use developments are evolving ...

Landscaping
»

Changing Landscaping Habits – Cape Town’s Day Zero threat to change landscaping habits says Easigrass

As dam levels in the Western Cape hover at around 20 percent, the ...

Screen Shot 2018-03-29 at 10.23.43
»

GCIP-SA now part of TIA

The Global Cleantech Innovation Programme for SMMEs and Start-ups in ...

manu
»

Made in Africa: Building The Future of Manufacturing

The annual Manufacturing Indaba provides a platform for international ...

Utility Week
»

Expand your knowledge in over 40 conference sessions at African Utility Week and save money!

The largest group of power, energy and water professionals will ...

ProductivitySA
»

The 20th Anniversary Challenge of The Workplace Challenge

Vania Reyneke, Project Manager, The Green Economy Journal attended ...

a2g
»

Sustainability in building design has won Renée Minnaar of the University of Pretoria a place at 31st Corobrik Architectural Student of the Year Awards

Sustainable building demands architectural design that aims to ...