Nersa refuses to grant Eskom electricity price hikes

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Eskom has told parliament that the appointment of a new board has resulted in it being viewed in a more positive light by investors.

The company says in the past two months it has been able to raise R43 billion. It says, however, that it needs to borrow R72 billion from the market that will allow it to pay back a R20 billion rand loan and use the other R50 billion for operational costs.

Acting CEO Phakamani Hadebe says the willingness of the markets to lend them money is a positive step.


“It indicates that the market are beginning to welcome Eskom back into the financial markets. It also highlights that Eskom now can begin to diversify its funding because we are attracting various investors.”

The power utility  says the National Energy Regulator, Nersa, has based its refusal to grant it a 19% electricity price hike on incorrect assumptions.

The utility has told parliament’s Energy Committee that these include the assumption that it will automatically close down two power stations and reduce staff by six thousand and cut its cost by 10%.

It says the regulator also assumes that Eskom will have a cash flow of R32 billion at the end of the 2018 and 19 financial year.

Acting CEO Phakamani Hadebe says, however, that they are hopeful that their differences with Nersa will soon be resolved.

“There’s a difference of opinion with the regulator on some of the numbers. Having raised the issues we are comfortable we will find a solution between us. It is important that at some point we find an equilibrium with the regulator so that we are able to plant a clear future going forward.”