South Africa News

Independent Power Producers blamed for proposed electricity price hike

Eskom has blamed Independent Power Producers for its proposed electricity price hike.

The power utility has asked regulator NERSA (National Energy Regulator of South Africa) for another increase – this time of over 20%.

Last April Eskom upped it’s power price by over 15%.

If its latest request is approved, come April this year, we’ll have to pay over 20% more for electricity.

Despite renewable power from IPPs sometimes costing less than that from coal, Eskom’s General Manager for regulations, Hasha Tlhotlhalemaje has justified the price hike by laying blame at their feet.

“A significant increase is related to Independent Power Producers costs. These are required to sell their electricity through Eskom and that is what’s passed through Eskoms tarrifs is one of the key contributors this particular year”.

She said Eskom has submitted thousands of pages with a detailed motivation for a hefty hike.

Operating cost increases account for around 5%, coal prices for 8%.

She’s also reminded the public the embattled power utility can only scaled-down or reduce costs directly under its control.

-EWN

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Thuli Phongolo

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