Eskom presented to stakeholders at the Gallagher Convention Centre in Johannesburg, Gauteng today at the National Energy Regulator of South Africa (Nersa) public hearings into its application for the evaluation and approval of the regulatory clearing account (RCA) balance for the first year (2013/14 period) of the third multi-year price determination (MYPD3).

Eskom used Open Cycle Gas Turbines (OCGTs) during this period to help it supply electricity, which is its mandate. These were used to ensure security of supply and as a last resort after all other cheaper options were utilised, before load shedding was implemented. Load shedding in 2013/14 amounted to only 13 hours for the year. Had Eskom not utilised OCGTs the cost to the economy would have been an estimated R25bn. It must be noted that in comparison we are claiming R8bn in our RCA application. This is despite Eskom’s efforts to procure every available megawatt generated before resorting to the usage of OCGTs.

SALGA's Mr Nhlanhla Ngidi raised the issue of the country's socio economic challenges and Eskom's efficiency while also accepting that South Africa still enjoys one of the cheapest electricity in the world. There is therefore an understanding that the price of electricity is still not cost reflective and the need to move towards more cost reflective tariffs.

Earthlife's Mr Tristan Taylor made outrageous claims about a politically-motivated decision to use OCGTs in order to keep the lights on. While Eskom appreciates inputs from stakeholders, we deny that our decisions were politically motivated as all our decisions are made in the context of our mandate to provide electricity to all South Africans. Further, our submission is based on facts and audited financials as to how we spent our resources for the year under review.

Eskom would like to thank stakeholders who presented and want to assure all of them that we complied with the RCA rules. We were not selective in our submission – we included aspects that were both favourable and unfavourable to Eskom.

 

Issued by Eskom