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"The term ‘cost-reflective’ has since been bandied each time Eskom demands an increase, but Eskom has never set a cap on where this number would be."
The whole electricity supply industry (ESI) needs revamping, not just tinkering on the peripheral says South African energy expert Ted Blom.
The Eskom board's latest announcements of intentions to appeal a 5% tariff approval does not come as a shock. This is according to Ted Blom, a partner at Mining & Energy Advisors, and former Eskom staffer.
Nersa's hearings into the Eskom tariff hike request have closed presenting the panel with its biggest headache to date. Of the R66 billion claimed, some R44 billion was a claim for a shortfall of forecast electricity sales, while the balance included cost overruns on production.
With Nersa hearings on Eskom’s 33% tariff increase application due to kick off early next week, beginning in Cape Town, the pressure is building up to what could be the proverbial last straw which...
Eskom is planning to recover losses from corruption and loopholes in the multi year price determination rules by further increasing tariffs by an estimated 30% before the end of 2018. In a parallel process, municipalities...