The City of Cape Town is concerned about a lack of clarity in Eskom’s multi-year price determination 2013\/14, otherwise known as MYPD3, application.<\/p>\n
The City’s director of electricity services, Dr Leslie Rencontre, told the National Electricity Regulator of SA (Nersa) on Tuesday there was no clarity on Eskom’s future build programme post-MYPD3, no details on a coal pricing pact, nor on the power utility’s future mandate.<\/p>\n
There was also a lack of certainty regarding the impact on customers after 2013\/14.<\/p>\n
The energy regulator is currently holding public hearings on Eskom’s proposed MYPD3.<\/p>\n
Eskom has asked for a 16 percent increase in electricity prices each year for the next five years.<\/p>\n
This would take the price of electricity from 61 cents a kilowatt hour in 2012\/13 to 128 cents a kWh in 2017\/18 — more than doubling the price over five years.<\/p>\n
The current multi-year price determination, MYPD2, ends on March 31, 2013.<\/p>\n
In contrast to the MYPD1 and MYPD2, which both spanned three years, Eskom is now proposing a five-year determination for MYPD3 to ensure a predictable, longer-term price structure.<\/p>\n
Rencontre said the impact of MYPD3 on the economy had to be considered, particularly regarding small manufacturers, as well as the secondary effect it would have on inflation.<\/p>\n
It was also necessary to recognise the impact of the 78 percent tariff increase between 2008 and 2011 on consumers and the economy.<\/p>\n
On the positive side, Rencontre said, was Eskom striving to achieve savings of R30 billion in operating expenses over five years without maintenance being compromised.<\/p>\n
Also positive was Eskom’s endeavours to improve the entity’s credit rating, and no dividend payment to shareholders for the foreseeable future.<\/p>\n
How to avoid a 405% increase in electricity prices<\/a><\/strong><\/p>\n Eskom driving South Africa out of business<\/a><\/strong><\/p>\n