POWER utility Eskom has apologised for the severe load shedding the country is experiencing.
Its general manager in the regulation department, Hasha Tlhotlhalemaje, said the impact on people and businesses caused was understood.
She said minimising load shedding was the highest priority for Eskom and was being given continuous focus.
Tlhotlhalemaje said the struggling power utility appreciated the tough decision made by the National Energy Regulator of South Africa (Nersa) for the financial year (FY) of 2024 and 2025 revenue determinations, and recognised the pressures these would place on consumers.
She said once Nersa made a decision on the restructuring of tariffs, they would ensure that Eskom could apply the adjustments from 1 April.
In July 2022, the High Court ordered Nersa to undertake the necessary regulatory steps to assess, consult and make a determination on Eskom’s FY2024 and FY2025 multi-year price determination application.
Nersa was granted an extension to make the decision by 12 January 2023, since it required more time. On Thursday, it announced a tariff increase of 18,6%.
Eskom CFO Calib Cassim said they noted the decision, and it would positively contribute from a financial and sustainability point of view.
“The revenue determination of R319 billion and R352 billion for the financial years 2024/5 will allow a further migration towards a price level that reflects the efficient cost of producing electricity,” he said.
He added that Eskom noted the tempering of the volume of diesel for the operation of open cycle gas turbines to a load factor of 6%, and that it was evident that both Eskom and Nersa were aligned that every effort was needed to improve the energy availability factor at power stations.
“The shortage in capacity due to both Eskom performance and delays in the independent power producers projects needs to be addressed. It is noted that Nersa has reconsidered capital-related costs when compared to the previous decision. This significantly contributes to allowing for it to recover costs related to debt commitments.”
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Cassim added that Eskom was awaiting the reasons for the decision for the determination made by Nersa that would provide further insights on how the revenue determinations for FY2024 and FY2025 were derived.
“It is hoped that Nersa has taken the direction given by the courts in previous judgments on related matters, and that these have been correctly addressed,” he said.
