Eskom puts trust on IPPs to help keep lights on

Power utility Eskom said it was working around the clock to get independent power producers (IPPs) on the grid to help keep the lights on.

Eskom made the comments following Nersa’s decision, announced on Thursday, to grant an electricity tariff increase of 18% for the 2023/ 24 financial year.

Households and businesses will pay over 12% more for electricity in 2024/25.

Last year, the power utility signed lease agreements with four independent power producers to contribute 2 000 MW to the grid.

While Eskom will claw back higher revenue from its customers, South Africans have hit out at the power utility over the unstable power supply.

Eskom’s Hasha Tlhotlhalemaje said work was being done to address the shortages in generating capacity.

“Eskom notes the decision by Nersa. This decision will 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.”

-EWN

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