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If Eskom wants to keep parts of its pricing application secret it should be questioned about this in public, says Ted Blom, OUTA’s Energy Director.

“I challenge NERSA and Eskom to hold public hearings on Eskom’s request to maintain secrecy on the coal suppliers, qualities and prices, as well as other information that Eskom wants exemption from providing to NERSA,” says Blom.

“The public should be offered an opportunity to comment on why full disclosure is essential in the tariff hike process before NERSA makes a decision.”

NERSA must also extend the comment deadlines to allow time for such a hearing, says Blom.

Eskom applied to NERSA, the national energy regulator, for exemption from certain of the Multi-Year Pricing Determination (MYPD) requirements, claiming that the level of detail required by the revamped MYPD rules was not available. Eskom’s upcoming MYPD application, still to be filed, will set electricity prices from April 2018.

Blom expects Eskom’s MYPD application, which is already months late, to request a tariff increase of at least 25%.

The closing date for public comments to NERSA on Eskom’s exemption application is 18 May and NERSA’s deadline for a decision on the application is 26 May. There is currently no provision for a public hearing on this application.

“Let Eskom’s executives stare the public in the face and deny that the punitive tariff increases are not directly related to rampant corruption,” demands Blom. “For too long NERSA has avoided its duty to regulate Eskom and, with hindsight, it appears to have been complicit in keeping Eskom’s corruption secret.”

On 18 May, OUTA is making a submission to NERSA on why full transparency is vital in Eskom’s MYPD application, as electricity prices affect all South Africans.

Anyone who wishes to participate in this may add their name to OUTA’s form online here: https://www.outa.co.za/eskom-campaign/eskom-secrecy/

Issued by OUTA