Eskom should be penalised for not providing electricity – OUTA
The Organisation Undoing Tax Abuse (Outa) says power utility Eskom
should be penalised for its failure to provide electricity.
OUTA spoke during the National Energy Regulator of SA’s (Nersa) public hearing on Eskom’s tariff application on Monday.
Eskom is asking for a 32.2% increase for the 2024.
The utility’s CFO Calib Cassim said there are 3 main reasons for the request.
“The depreciation of 10.67% which is due to an incorrect regulatory asset base valuation by NERSA in its FY2023 its decision.
“Secondly the IPP cost increase of 9.05% due to further energy being sourced from IPPs including emergency procurement.
“Eskom primary energy of 7.85% of which the majority, 6.09% is due only to increase in diesel and fuel oil prices as well as volume increase in OCGT fuel.”
But Outa energy advisor Liz Macdaid said Eskom should be panelised for load shedding.
“During the tie load shedding is at stage 5 or 6 why is it that we can’t use that to say that given that there’s a proportion of your infrastructure that is useless at the time maybe you should.
“Maybe if they got penalised for not proving electricity it will incentivise them to prove it instead of sitting and waiting to come to NERSA for the RCA.”
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