Nersa is cognisant of Eskom’s issues but diesel is not a viable solution

Nersa is cognisant of Eskom’s problems but using diesel is not a viable solution to the ongoing energy crisis in SA. This is according to Nersa Financial Regulatory specialist, Thilivhali Nthakheni.

The National Energy Regulator of South Africa (NERSA) says Eskom has to be efficient.

Eskom initially applied for a massive electricity hike in June 2021, amounting to a recovery of R351 billion from Eskom’s standard and non-standard tariff customers.

However, now Nersa signed off on R318 billion, which equates to an 18.65 % tariff increase for the 2023/24 financial year.

Eskom had sought an increase of more than 32% citing higher fuel costs, depreciation of its generation assets and higher procurement from independent power producers.

Nthakheni reiterates that the power utility has to properly maintain its power plants.

“When Eskom run their plant they need to be efficient and that is the basis at which we are granting this revenue to Eskom. They must run their operation efficiently and that is the message, is that they must use the less expensive mix. You can have a car that is old that needs maintenance and with proper maintenance that shouldn’t be difficult to do. It just have to be done right.”

Nthakheni, has added that If Eskom wants to oppose the decision by the National Energy Regulator of South Africa (Nersa) by filing an appeal, then they will meet in court.

“We cannot make that call for Eskom but it is their constitutional right, they normally do that but our believe is that we have done all that had to be done. We have followed the methodology to the tee. If they decide to take us to court, then we will have to meet in court.”

Full Interview Below: