Experts talk about the implications of the National Electricity Regulator of SA’s recent decision By Business Day TV - 29 January 2021 Picture: 123RF/garloon
The National Energy Regulator of SA (Nersa) has announced that Eskom can recover an extra R6bn from its customers.
The news may be welcomed by the cash-strapped utility but not by consumers, who are already struggling financially with rising electricity prices.
We spoke to Nhlanhla Gumede, full-time regulator member of electricity and chairperson of the electricity subcommittee at Nersa, Hasha Tlhotlhalemaje, general manager for regulation at Eskom, and energy analyst Ted Blom.
Business Day TV talks to a panel experts about the implications of the National Electricity Regulator of SA’s recent decision
Eskom wants own generation consumers to pay a fair, unsubsidised contribution for using the grid.
Eskom wants those generating their own power, particularly through renewables, to pay for their use of the grid.
However, an energy expert warned this could force more users to go off-grid, leading to ramifications for poorer households which rely on subsidies from higher income households.
Nersa said Eskom s proposal will be interrogated and it plans to engage broadly with stakeholders before reaching a decision.
Eskom wants those generating their own power to pay a charge for using the grid as a back-up, but the power utility said it will not be earning more revenue if this happens.
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The National Energy Regulator of SA has allowed Eskom to collect an additional R6 billion of allowable revenue, in what could potentially see it implement tariff increases of up to 10.95% from April.
In an announcement on Thursday, the regulator stated that the additional revenue would be recouped by Eskom over the 2021/22 financial year. Nhlanhla Gumede, who is responsible for Electricity Regulation at Nersa, stated that the figure still required approval.
Nersa s decision is based on Eskom s Multi-Year Price Determination regulatory clearing account applications for the three financial years 2014/2015, 2015/2016 and 2016/2017, and the firm s supplementary revenue application for 2018/2019.
Gumede said the implication of the decision would be a tariff increase of between 8.12% and 10.95% if it were all liquidated in the 2022 financial year.