By Lehlohonolo Lehana.
The National Energy Regulator of South Africa (Nersa) proposed new method for determining electricity tariffs will result in much higher electricity tariffs, and the hardest hit will be the poor.
This warning comes from Eskom in a 76-page response to the consultation paper Nersa published on 30 June.
The consultation paper invited written comments by end of July, but Nersa extended the deadline to 12 August after appeals by several stakeholders, including the Energy Intensive User Group.
Three virtual public hearings on the paper are planned for 10, 11 and 12 August, and Nersa hopes to publish the finalised methodology by 30 September.
In a statement announcing the extension, Nersa emphasised that the methodology will apply not just to Eskom, but to the whole electricity industry.
The Nersa statement further clarified its intention that the new methodology will be implemented in a phased manner, as opposed to a “big-bang approach” that Eskom has warned against.
“It is envisaged that once the methodology has been approved, an appropriate transition period will be allowed, as has happened in the past, to enable the industry to adapt to the new EPDM [electricity price determination methodology] over time,” Nersa stated.
Meanwhile Eskom says despite suspending load shedding, the power generation system remains vulnerable to breaking down.
Eskom said it suspended load shedding as a result of increased generation capacity, lower demand and the recovery of emergency generation reserves.
“While we are able to suspend load shedding at this point, it is important to note that the generation system is still vulnerable to breakdowns and load shedding may be required. We therefore urge all South Africans to continue using electricity sparingly, especially during these uncertain times on the power system.