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Nersa rejects Eskom's bid to keep coal contract secret

eNCA logo eNCA 5 days ago
Photo_Web_Nersa_220116: Should Nersa give Eskom the green light, consumers will have to dig deep – a big ask in the current economic climate. © eNCA Should Nersa give Eskom the green light, consumers will have to dig deep – a big ask in the current economic climate.

JOHANNESBURG – Eskom has until the end of the month to provide details about its coal purchases and revenues to the energy regulator.

This includes its projected 10-year sales forecasts, and its handling of coal and water costs.

Nersa has rejected Eskom's request to keep secret information required by the Multi-Year Price Determination.

This comes after the Organisation Undoing Tax Abuse (Outa) opposed Eskom’s bid to hide its operating statistics.

It also convinced Nersa to hold public hearings on the matter.

But Eskom applied for an exemption from publishing those statistics.

In a statement on Friday, Eskom said it would implement the decision made by the energy regulator.

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“Eskom will update the revenue application, with assumptions, as guided by Nersa for the relevant areas where condonation was not granted, and submit to Nersa by 25 August. Eskom has always provided Nersa with extensive information for analysis. Eskom is committed to continue this practice,” Eskom said.

Outa accused Eskom of grossly overcharging its customers for electricity.

Energy analyst Ted Blom said: “I've done a basic calculation and I've had it verified by three sets of economists and those numbers indicate that Eskom's overcharged us to the effect of about a trillion rand since 2005 and that's a lot of money.

"However, it's not our intention to break the back of Eskom. We would be quite happy if Eskom could just get onto the proper price path. That path is about half of what it's currently charging us.

"So in the next price application, we will indicate to Nersa that our expectation is that within five years Eskom brings the price of electricity to what it should have been had there not been all these excessive price increases, stealing and corruption,” said Blom.

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