Eskom says it appreciates the “tough decision” made by the National Energy Regulator of South Africa (Nersa) to hike electricity tariffs by more than 18% and 12% in the next two financial years respectively, adding that it “recognises the pressures this determination will place on consumers”. In a statement responding to the shock tariff decision, which was announced by the regulator late on Thursday, Eskom CFO Calib Cassim said the revenue determination for the financial years 2023/24 and 2024/25 would “positively contribute from a financial and sustainability point of view … and allow a further migration towards a price level that reflects the efficient cost of producing electricity.” The decision follows a court order requiring Nersa to undertake the necessary regulatory steps to assess, consult and make a determination on Eskom’s revenue application in time for the first hike to be implemented in April this year. Eskom said it noted the tempering of the volume of diesel for the operation of open cycle gas turbines to a load factor of 6% – as compared to the 12% load factor stipulated in its revenue application. In announcing the tariff decision, the regulator said the hikes were conditional upon Eskom ramping up efficiencies in areas within its control, such as plant performance. “It is evident that both Eskom and Nersa are aligned that every effort needs to be made to improve the energy availability factor at Eskom power stations,” the utility said, noting that the shortage in capacity is due to both Eskom performance and delays in the Independent Power Producers projects which need to be addressed. “Nersa has reconsidered capital-related costs when compared to the previous decision. This significantly contributes to allowing for Eskom to recover costs related to debt commitments.” Eskom said it awaits the reasons for the decision. The power utility again apologised for the severe extent of load shedding, with Stage 6 currently being implemented. “The impact on individuals and businesses is understood. The minimising of load shedding is the highest priority for Eskom, and continuous focus at all levels in the organisation is being given.”
Published on : 2023-01-13 08:47:33
Source :fin24
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