In its submission to the National Energy Regulator on the request for tariff increases, Eskom has assured South Africans that there are no plans for load shedding in the near future.
The power utility further stated that the requested hikes are not meant to recover monies lost through corruption or load shedding. The Northern Cape’s public hearing on the proposed 20.5% tariff increase for the 2022/2023 financial year took place virtually this afternoon.
According to a study done by Eskom, the country suffered a R35-billion loss in economic damage – over a period of 12-years – due to load shedding.
“I just would like to point out that we absolutely, absolutely make sure that we do not recover any revenue that is related to the load shedding volumes. And we do this in our regulatory clearing accounts. And as mentioned by our CFO yesterday Eskom does not plan to load-shed. Our production plan is geared towards making sure that we can meet the need of demand that is required. So there is no planning; in forward-looking, there is no plan for load shedding,” Eskom’s General Manager, Hasha Tlhotlhalemaje explains.
Eskom says the agricultural sector was the hardest hit by load shedding during the 2018/2019 financial year. It says the sector’s economic growth was reduced by 5%. This emerged during the Northern Cape’s virtual hearings conducted by Nersa on Eskom’s request for a 20% tariff increase.
“An aspect that came out of the study we looked at the impact on GDP growth per sector. There is an uneven impact on economic sectors. With your agricultural sector taking the brunt of the impact and having their 2018/2019 period having their economic growth reduced by almost five percent. And, then following up on that the utilities and the manufacturing sectors were the next hardest hit. Certain sectors like the financial and personal service sectors for a minimum impact in terms of their economic growth,” says Eskom’s Ulrich Minnaar.
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