CAPE TOWN: South African’s ESKOM has asked the National Energy Regulator (Nersa ) to increase the price of electricity by 25.3% for the year ending March next year. The utility needs to recover about R53bn this year to plug a hole in its finances as a result of higher operating costs.
The regulator said in a statement on Friday that the proposed increase includes the 12.69% it has already approved, a 10.10% “selective reopener for OCGTs (open-cycle gas turbines), STPPP (short-term power purchase programme)” and a 2.51% increase in the environmental levy by 2c/kWh.
Eskom said it needed to recover R32.9bn, which is the cost of running the diesel-guzzling OCGTs and R19.9bn to pay for power purchased from independent producers. “The energy regulator is considering the application taking into consideration the urgent need to stabilise the electricity network to avoid a possible total blackout and Eskom’s operational and financial challenges,” said Nersa.
Plagued by a shortage of generation infrastructure, lower electricity prices than it deems appropriate and an ageing fleet of power stations, Eskom has a revenue shortfall of R225bn to fill over the years to March 2018.
