NERSA rejects Eskom’s hike

JOHANNESBURG – According to Eyewitness News (EWN), Nersa chairman Jacob Modise said, “The application did not provide the mechanism on how the proposed increase, if granted, will be implemented in the current financial year in a manner that is consistent with the requirement of the municipal financial act 2003.”

EWN reported, “This means, while Eskom will be given the already approved 12 percent, it will not be granted a further hike.”

This was despite Eskom arguing that it needed more funds to buy diesel in order to minimise load shedding and prevent further damage to the economy.

A reported by EWN stated, “On Wednesday (June 24), Eskom’s Acting CEO Brian Molefe vowed to do whatever it takes not to harm South Africa’s economy, whether or not they receive a tariff increase.

“Molefe was giving his closing remarks at the end of two days of public hearings into Eskom’s 25 percent electricity price hike.”

He argued they won’t be pursuing a 2,5 percent environmental levy so what they’re looking for is about 9,5 percent for the 2015/16 financial year to keep the lights on.

The acting CEO reiterated that load shedding costs six times more than what they were asking for to run the open cycle gas turbines which require diesel.

Businesses, the mining sector and municipalities have been adamant South Africans cannot afford another electricity price hike and warn that if it goes ahead, industries will collapse and jobs will be lost.

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