Eskom, the power utility is non-committal on the rejection of its push for an increase in tariffs. The company had requested that the rates be increased by 9,58 as current levels were not viable.
Eskom had argued was to fund increase was to fund higher usage of open cycle gas turbines (OCGTs) and cover the cost of buying capacity from the short-term power purchase programme (STPPP) in order to limit the severity of load shedding and the impact on the economy.
The National Energy Regulator of South Africa (NERSA) has announced it would not grant the increase. “We note the decision made by NERSA, and we will study the details of the determination and consult with the Shareholder before we can comment further on its impact,” said Acting Chief Executive of Eskom, Thava Govender.
Meanwhile, the opposition Democratic Alliance (DA) welcomed NERSA’s decision. “This decision ought to be hailed as a victory for all electricity consumers, for our economy and for every unemployed South African,” said Gordon Mackay, DA Shadow Minister of Energy.
Photo?> by Heather Dowd?> | CC 2.0?>