Nersa fed up with Eskom's intransigence

The National Energy Regulator of SA is so tired of Eskom’s “lack of cooperation” that it wants to drag it before a tribunal that has the power to fine the state-owned power utility R20 billion a day.

10.11.2019

The National Energy Regulator of SA is so tired of Eskom’s “lack of cooperation” that it wants to drag it before a tribunal that has the power to fine the state-owned power utility R20 billion a day.

The National Energy Regulator of SA (Nersa) is so tired of Eskom’s “lack of cooperation” that it wants to drag it before a tribunal that has the power to fine the state-owned power utility R20 billion a day.

According to correspondence that Rapport has seen, Nersa has for some time been trying to conduct an audit of Eskom’s power stations to gain first-hand knowledge of the reasons that the beleaguered state-owned entity cannot keep the lights on.

Eskom has denied being opposed to the audit, saying it is merely concerned that Nersa comply with the rules regarding the audit.

Eskom’s application was initially based on the assumption that its power stations could deliver at 78% of their capacity for the three years ending in March 2022.

But Nersa called the 78% availability rate unrealistic and amended it to 71.5% in the current financial year, 72.5% in 2020/21 and 73.5% in 2021/22.

Despite a meeting having taken place between the two parties, and various letters having been exchanged, there has been no further progress.

Eskom said that Nersa was welcome to do an audit, provided that it used the correct standards and did not exceed its powers. The power utility added that it shared the availability rate of its power stations whenever it submitted a price adjustment application to Nersa, and would continue to do so.

“Eskom requested this information from Nersa, but Nersa changed its mind and decided that it wanted to audit Eskom’s progress according to the assumption of the current three-year tariff decision.”

The first application is expected to be heard early in December. If successful, it will mean that electricity tariffs could increase by about 16% over the next two years, instead of the approximately 8% and 5% increases, respectively, that Nersa approved.

She said that as an independent regulator, Nersa had the discretion to decide on Eskom’s tariffs. To do so, it had to weigh up the interests of the power utility, the public and the country’s economy, rather than strictly adhering to prescribed guidelines.

Read more: City Press

And who’ll pay the R20 billion a day? Isn’t it us the consumer. NERSA e ska re nyela tuu!! Wow more pressure to privatize Eskom I think time has come to fire the board and CEO after that president needs to reshuffle his cabinet. We need a new Public enterprise minister. How so🤷

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