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CAPE TOWN — Eskom wants to raise its tariffs by over 50%, the National Electricity Regulator of SA (Nersa) announced yesterday.
If granted, the increase will replace the 14,2% hike Eskom was allowed by Nersa in December last year.
That increase is scheduled to come into effect from April 1.
“Eskom has applied for a revision of the price for 2008/9 from 14,2% to 53% increase [sic] or a 60% nominal increase,” Nersa said.
It said Eskom wants the revision because of what the utility said are its higher primary energy costs, and “accelerated demand side management” costs.
“In the light of the current electricity supply shortage and load shedding in the country, the energy regulator will give urgent attention to Eskom’s application and make its decision after following due process.”
Nto Rikhotso of Eskom’s media desk confirmed earlier that the new application was to be lodged yesterday afternoon, but that she could not reveal the increase sought.
She said that Nersa will open up a public participation process once the request is lodged.
“It’s their prerogative to communicate what we have submitted to them,” she said.
In allowing a 14,2% hike last year, Nersa rejected Eskom’s bid for 18,7%.
Eskom said at the time it needed the increase to maintain effective operations following a steep increase in coal costs and the need to finance capital expenditure.
Its managers are scheduled to receive performance bonuses of shares valued at R10 million at the end of this month.
The hike, whether 14,2% or 53%, comes in the wake of a two cents per kilowatt hour electricity levy announced last month by Finance Minister Trevor Manuel, and amid a new round of nationwide power cuts.
Reacting earlier to media reports that the hike sought was 24%, trade union Solidarity said South Africans cannot afford the increase.
It urged Nersa to reject the request.
More cheerful news from Eskom yesterday afternoon is that South Africans will probably not be left in the dark over the Easter weekend.
It said in a statement that two of the nine generating units that had been out of action on “unscheduled maintenance” came back earlier in the day, and two more were expected to come on line last night.
“However, load shedding will continue until after evening peak [9 pm] as the wet weather continues,” it said.
Eskom said it is currently load shedding up to 2 500 megawatts, and the risk of cuts will remain until tomorrow.
“We don’t expect any load shedding over the long weekend as demand patterns are historically lower during holidays,” said Erica Johnson, Eskom’s chief officer for networks.
Earlier yesterday, before any units were restored, Eskom spokesman Andrew Etzinger said the power situation was “extremely serious”.
He warned that in the unlikely, but possible, event of more generating-unit failures, power to mining companies would have to be cut.
Rikhotso told Sapa that mines are operating on rationed power, and the long-term plan is that this will be “ramped up” in stages.
An announcement on Monday that Gold Fields had been allocated additional power for use at its Kloof and Driefontein gold mines formed part of this process.
“It’s going to be done for all of them,” she said.
In January, power shortages forced mines to shut down for five days.
Solidarity is to also ask President Thabo Mbeki to appoint a task team to support him in seeking a solution to the crisis.
If granted, the increase will replace the 14,2% hike Eskom was allowed by Nersa in December last year.
That increase is scheduled to come into effect from April 1.
“Eskom has applied for a revision of the price for 2008/9 from 14,2% to 53% increase [sic] or a 60% nominal increase,” Nersa said.
It said Eskom wants the revision because of what the utility said are its higher primary energy costs, and “accelerated demand side management” costs.
“In the light of the current electricity supply shortage and load shedding in the country, the energy regulator will give urgent attention to Eskom’s application and make its decision after following due process.”
Nto Rikhotso of Eskom’s media desk confirmed earlier that the new application was to be lodged yesterday afternoon, but that she could not reveal the increase sought.
She said that Nersa will open up a public participation process once the request is lodged.
“It’s their prerogative to communicate what we have submitted to them,” she said.
In allowing a 14,2% hike last year, Nersa rejected Eskom’s bid for 18,7%.
Eskom said at the time it needed the increase to maintain effective operations following a steep increase in coal costs and the need to finance capital expenditure.
Its managers are scheduled to receive performance bonuses of shares valued at R10 million at the end of this month.
The hike, whether 14,2% or 53%, comes in the wake of a two cents per kilowatt hour electricity levy announced last month by Finance Minister Trevor Manuel, and amid a new round of nationwide power cuts.
Reacting earlier to media reports that the hike sought was 24%, trade union Solidarity said South Africans cannot afford the increase.
It urged Nersa to reject the request.
More cheerful news from Eskom yesterday afternoon is that South Africans will probably not be left in the dark over the Easter weekend.
It said in a statement that two of the nine generating units that had been out of action on “unscheduled maintenance” came back earlier in the day, and two more were expected to come on line last night.
“However, load shedding will continue until after evening peak [9 pm] as the wet weather continues,” it said.
Eskom said it is currently load shedding up to 2 500 megawatts, and the risk of cuts will remain until tomorrow.
“We don’t expect any load shedding over the long weekend as demand patterns are historically lower during holidays,” said Erica Johnson, Eskom’s chief officer for networks.
Earlier yesterday, before any units were restored, Eskom spokesman Andrew Etzinger said the power situation was “extremely serious”.
He warned that in the unlikely, but possible, event of more generating-unit failures, power to mining companies would have to be cut.
Rikhotso told Sapa that mines are operating on rationed power, and the long-term plan is that this will be “ramped up” in stages.
An announcement on Monday that Gold Fields had been allocated additional power for use at its Kloof and Driefontein gold mines formed part of this process.
“It’s going to be done for all of them,” she said.
In January, power shortages forced mines to shut down for five days.
Solidarity is to also ask President Thabo Mbeki to appoint a task team to support him in seeking a solution to the crisis.
