advertisement
Facebook
X
LinkedIn
WhatsApp
Reddit

Eskom needs R52.8 billion to keep the lights on

Many South African citizens might think that the current spell of loadshedding is pretty bad, but to prevent the country from falling into a total blackout, energy producer Eskom says that it needs about R52.8 billion to stop that from happening.

This was revealed in Eskom’s application to the National Energy Regulator (NERSA) over the weekend, in which it made an urgent application to hike to electricity price by 25.3% for the 2015/16 to 2017/18 period.

In a statement in which NERSA acknowledged receipt of Eskom’s proposal, it said that Eskom requires the cost recover of R32.9 billion for Open-Cycle Gas Turbines (OCGTs) and another R19.9 billion for the ShortTerm Power Purchase Programme (STPPP).

“According to Eskom’s application, the selective reopener will result in a total price increase of 25.30% for 2015/16. This will consist of the 12.69% (already) approved by the Energy Regulator, the 10.10% selective reopener for OCGTs, STPPP and a 2.51% increase in the environmental levy by 2c/kWh,” NERSA said in a media statement.

No date for the approval, or disapproval, of the application has been given, but Nersa said that it was taking all factors into consideration.

“The Energy Regulator is considering the application taking into consideration the urgent need to stabilise the electricity network to avoid a possible total blackout and Eskom’s operational and financial challenges.”

That is even more reason to go off the grid completely. In January we compared the price of Eskom’s feed to that of solar power – read the article here. It also includes the graph below, which shows the historical monthly cost for less than 600kWh from Eskom.

Eskom kWh

[Image – CC by 2.0/Ian Britton]

advertisement

About Author

advertisement

Related News

advertisement