By Lehlohonolo Lehana.
Eskom and the City of Ekurhuleni have reached an agreement on the implementation of load shedding.
According to Eskom, it has requested the City of Ekurhuleni in Gauteng to rectify the violation of its load shedding requirements on numerous occasions, in accordance with the parties’ electricity supply agreement.
“These pleas have yielded very little success with the municipality continuous failing to implement the required load shedding in its areas of supply,” Eskom said on Thursday.
However, in compliance with National Energy Regulator of South Africa (NERSA) requirements, since 31 May 2021, the power utility has reduced the required load from the City of Ekurhuleni’s respective points of supply.
“Yesterday, the City acknowledged that they were unable to implement load shedding as required.”
The City said it was unable to implement load shedding as required and has requested Eskom to continue implementing power cuts in the City’s licensed area of supply as an interim measure.
“The City further agreed to communicate this agreement with Eskom to the municipality’s customers, and to publish the revised load shedding schedules.”
Eskom has urged customers from the City of Ekurhuleni to contact the municipality directly regarding this matter.
Meanwhile subjecting households and businesses countrywide to rotating blackouts this week, energy regulator Nersa has published for comment Eskom’s latest submission for additional revenue to be recovered from electricity tariffs.
Eskom is claiming an additional R8.4 billion in terms of the regulatory clearing account (RCA) methodology, a risk mitigation measure to protect Eskom and the consumer when actual numbers vary from those assumed when tariffs were set.
If Eskom succeeds, the amount will be added to its revenue from electricity tariffs in 2022/23.
Nersa, however, has not yet determined the revenue for that year, and therefore it is not yet possible to calculate the possible impact it would have on the tariffs.
The regulator will hold virtual public hearings in July and has indicated that it will finalise its decision near the end of August.
Whatever amount Nersa approves can be added to tariffs from 1 April 2022 for end users buying directly from Eskom and from July 1 for municipal customers.
This application comes as Nersa’s appeal is pending against a high court decision that it should add a further R69 billion unlawfully subtracted from Eskom’s revenue in the period 2019/20-2021/22. Nersa and Eskom earlier agreed to the liquidation of R10 billion of this amount, which was added to the current year’s tariffs.
Nersa argues in court that the matter should be remitted to the regulator, rather than having the court decide on the specific measures to rectify the situation.
Over and above that, there are three other Nersa decisions that Eskom has challenged in court that still have to be determined that could push Eskom’s additional entitlement to above R90 billion. All of this will have to be paid for by consumers in the next few years.
According to this latest submission by Eskom, the under-recovery is driven by lower than expected sales volumes and higher than expected costs.
Eskom claims R5.6 billion additional revenue due to lower sales volumes.