Sat Dec 03 11:35:36 SAST 2016

Outa: Eskom will apply for another R80 billion claw-back in next 24 months

TMG Digital | 2016-01-28 09:56:59.0
Outa – previously the Opposition to Urban Tolling Alliance before a broadening of its scope of activism– “will endeavour to hold Nersa to book‚ and act where we believe NERSA has failed”‚ energy spokesperson Ted Blom vowed. File photo
Image by: YUYA SHINO / REUTERS

The Organisation Undoing Tax Abuse (Outa) will next week tell the National Energy Regulator of South Africa (Nersa) that it has not “acted properly and diligently in the execution of its duties”.

That’s according to energy spokesperson for “the new Outa”‚ Ted Blom in his commentary on the public hearings into Eskom’s application for electricity tariff hikes

Outa – previously the Opposition to Urban Tolling Alliance before a broadening of its scope of activism– “will endeavour to hold Nersa to book‚ and act where we believe NERSA has failed”‚ Blom vowed.

“I have reviewed the outcomes of the Nersa hearings that I have testified at since 2009‚ and if we are going to be honest‚ the results have been bitterly disappointing as will be gauged when one examines the records of decision that have blessed Eskom with over 700% price increases since 2007‚” he said.

Blom‚ who will testify again at the Nersa hearing next week in Johannesburg‚ said: “My estimate is that Eskom will be applying for another R80-billion price claw-back in the next 24 months (versus R22-billion now) which will effectively require another 32% plus price increase before 2018.

“That will be on top of further operational cost increases in coal and transport - two cost elements Eskom has not shown in the past that it can control and which increased by average of 20% plus year on year.”

Blom will in May lead a debate “on Africa’s current energy challenges and successes: at the annual African Utility Week conference and expo at the CTICC in Cape Town.

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