Policy, Law, Economics and Politics - Deepening Democracy through Access to Information
This privately-owned website is operated and maintained by Creamer Media
We have detected that the browser you are using is no longer supported. As a result, some content may not display correctly.
We suggest that you upgrade to the latest version of any of the following browsers:
         
close notification
25 May 2012
   
 
 
Article by: Sapa

The current Eskom application for a 35% electricity tariff increase is a farce, the Democratic Alliance (DA) said on Thursday.

The tariff - brought before the National Energy Regulator of South Africa (Nersa), was in fact "null-and-void" as the application did not include enough renewable energy sources as required by law, the DA said in a statement.

"Any application brought before Nersa must comply with several requirements, one of them being the amount of renewable energy which Eskom will produce as part of its total electricity generation," the DA's shadow minister of public enterprises Manie van Dyk said.

He said the electricity parastatal's application did not comply with the amount of renewable energy required, as stipulated by the Integrated Resource Plan (IRP) and as required by the Electricity Regulation Act.

"This can only mean that the Nersa hearings calling for public input are a complete farce as Nersa will now be forced to reject the 35% application on a legal basis, allowing Eskom to simply revert back to its original application of 45% requiring another round of hearings."

He said it was also "highly suspicious" that the IRP, stipulating the new energy requirements, was only signed into law on December 16, 2009 and only published in the Government Gazette on December 31, 2009.

"It creates the impression that the Department of Energy is somehow complicit in the 35% farce," Van Dyk said.

"This chain of events is simply unacceptable and suggests that Eskom has little real interest in public debate, transparency and accountability."

Van Dyk said that if the 35% recommendation was rejected, one could argue that Eskom would have effectively misled the country on energy matters directly impacting on economic growth and job creation.

"Eskom needs to produce enough electricity for South Africa's economy to function properly.

"If it cannot do that the consequences will be catastrophic."

Van Dyk said the public was "caught between a rock and a hard place".

"On the one hand we need to do whatever it takes to ensure that we have enough electricity, on the other hand they are being forced to carry the cost of an administration that has grossly mismanaged our electricity infrastructure."

Against this background, however, the DA did not believe that Eskom had done everything in its power to keep the proposed tariff hikes as low as possible.

"This most recent debacle is yet further evidence of their failure to properly handle this matter."

Van Dyk said the DA would ask the Ministers of Energy and of Public Enterprises to respond publicly to these facts "as a matter of urgency".

He added that Eskom had a penchant for "leaving South Africa in the dark," and this could not be allowed to happen again.

 

Edited by: Sapa
 
 
 
 
  Photos
 
 
 
 
 
 
 
  Map
 
 
 
 
 
 
Advertisements:
 
 
 
 
 
 
 
 
 
 
 
 
  Related social media
 
 
 
 
 
 
  Topics on this page
 
 
 
 
 
 
 
 
 
Online Publishers Association