Public hearings are to continue on Tuesday into Eskom’s application to energy regulator, Nersa, for a 15% annual tariff increase for each of the next three years.
An energy expert has criticised Eskom’s proposed tariff hike, labelling it as premature.
Eskom currently finds itself in debt of about R419 billion.
Energy expert Ted Blom has told the hearing in Cape Town that there were a few aspects which need to be considered before the power utility could propose its three year price increase.
“These applications are defective in a sense that they don’t reflect the reality of South Africa’s economy. Secondly, I think they are premature because the board has still got to announce its turnaround plan which hopefully will make a big difference to Eskom in terms of structure and viability and thirdly the president’s task force. The eight wise men still have to report by the end of the month. So for us to give Eskom a three year price trajectory without knowing all the drastic changes we expected from these wise people, it’s premature, it’s a waste time.”
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