| URL: http://www.engineeringnews.co.za | |
| Policy, Law, Economics and Politics - Deepening Democracy through Access to Information | This privately-owned website is operated and maintained by Creamer Media |
 |
 |
|
Polity
Article by: Terence Creamer Published: 23 Jan 2010
|
|
| Our submission the 'only viable one', says Eskom | |
| Eskom's contribution to the National Energy Regulator of South Africa (Nersa) regarding the appropriate revenue requirement for the utility between 2010 and 2013 was the "only viable one", acting chairperson and CEO Mpho Makwana said at the end of a ten-day public hearings process on Friday afternoon. The hearings, which moved across all nine provincial capitals between January 11, 2010, and January 22, 2010, were convened to help Nersa deliberate on Eskom's application for tariff increases of 35% a year, over the second multiyear price determination (MYPD2) period. Makwana, who addresses a depleted audience in Midrand, switched seamlessly between several of South Africa's 11 official languages, leading to a rush for translation-service headphones. He said that the "correct choices" were now required from the regulator, because "if Eskom fails, South Africa fails". That correct choice was: "35%, 35%, 35%". While many aspects of the future nature of the energy supply sector could and should be debated, Eskom asserted that it was in the interest of South Africa to move towards cost reflectivity in the way electricity was priced - a principle that underlined its MYPD2 application. The comments made on a proposal that 30% of Kusile be set aside for private equity, as well as the unsolicited suggestion that other assets possibly be packaged for sale, were also noted. And, Makwana encouraged those with ideas in this regard to make their way to its head office at Megawatt Park to discuss their proposals, including those, such as the Congress of South African Trade Unions, that opposed any sale altogether. A strong appeal was also made for the development of a national "compact" on the future of the supply system, with Makwana calling specifically for a bilateral with Business Unity South Africa (Busa), which represented organised business. He said the utility was keen to understand Busa's ideas on how the pools of private capital, which Busa said were available for investment into Eskom assets, could be unlocked. He was also keen that some of the misperceptions and incorrect facts in business' submission be clarified and rectified. The chairperson of the hearings, Thembani Bukula, said that when making its final decision, Nersa would do so "to the letter of the law", and without straying from its mandate. Nersa would make its final determination on February 24, 2010. |
|