Nersa to conduct public hearings into Eskom tariff application

Sunday, September 17, 2017

The National Energy Regulator of South Africa (Nersa) will conduct nationwide public hearings in October and November as part of its decision-making process into Eskom’s revenue application for the 2018/19 financial year.

“In line with its commitment to being transparent and broadening public participation in its decision-making process, NERSA will conduct public hearings in all nine provinces between 30 October 2017 and 16 November 2017,” said the energy regulator on Friday.

This as the regulator, at a meeting on Wednesday, approved the process and timelines for processing Eskom’s revenue application for the 2018/19 financial year.

“Eskom has applied for a total allowable revenue of R219 514 million. Eskom’s total allowable revenue application translates to a 19.9% average increase in electricity tariffs,” said Nersa on Friday.

The power utility submitted its application for allowable revenue on 25 August 2017. This was in accordance with Nersa’s decision of 27 July 2017, where Eskom was given 30 calendar days to submit an application that complies with the requirements of the Multi-Year Price Determination (MYPD) Methodology and the Minimum Information Requirements for Tariff Application (MIRTA).

“The Energy Regulator will follow due regulatory processes in considering Eskom’s revenue application for 2018/19.”

In terms of timelines for processing Eskom’s revenue application, Nersa published Eskom’s revenue application on its website for stakeholder comments on Wednesday, 13 September.

The closing date for stakeholder comments is on 13 October.

Public hearings dates

Public hearings on the revenue application will kick off in Cape Town in the Western Cape on 30 October. The hearings will then move to Port Elizabeth in the Eastern Cape on 1 November followed by KwaZulu-Natal’s Durban on 3 November.

Hearings will be held in Kimberly in the Northern Cape on 6 November followed by Polokwane in Limpopo on 8 November.

Mbombela in Mpumalanga will host the hearings on 10 November while the City of Matlosana in the North West will host the hearings on 13 November.

The Free State’s Bloemfontein will host the hearings on 15 November.

Midrand in Gauteng will host the last of the public hearings on 16 November.

“NERSA would like to encourage all stakeholders and the public to participate in its decision-making processes by providing written comments and attending or making oral presentations at the public hearings. “

Written comments

Written comments can be forwarded to mypd@nersa.org.za  or hand-delivered to 526 Madiba Street, Arcadia, Pretoria. Comments can also be posted to P.O Box 40343, Arcadia, 0083, Pretoria, South Africa.

The closing date for written comments is 13 October 2017 at 4pm.

The energy regulator urged the public and stakeholders who wish to attend the hearings or present their views to submit their requests to publichearings@nersa.org.za by 3:30pm on 23 October 2017.

Eskom’s application is available on the NERSA’s website at www.nersa.org.za .

On Thursday, Eskom welcomed Nersa’s approval of the consultation process for the power utility’s 2018/19 revenue application.

“Eskom understands that Nersa, in accordance with its mandate, will evaluate the revenue application and allow for public consultation before making a decision on the allowed revenue. We are committed to participate in Nersa’s process and look forward to further engagement on the revenue application with stakeholders,” said Eskom’s acting Chief Financial Officer Calib Cassim.

The 19.9% average increase translates to a 1 July 2018 local-authority tariff increase of 27.5% to municipalities.

In its revenue application, Eskom said municipalities will continue to pay the 2017/18 rates for the period 1 April 2018 to 30 June 2018. This is due to the Municipal Finance Management Act (MFMA) requiring municipal tariff changes to be made only from 1 July each year.

NERSA’s decision on the revenue application is expected on 7 December.

Nersa’s mandate is to regulate the electricity, piped-gas and petroleum pipelines industries in terms of the Electricity Regulation Act. – SAnews.gov.za

 

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