SA electricity supply 'at risk'

2009-06-09 14:15

kalahari.com

Pretoria - The country’s electricity supply would be at risk if Eskom did not receive its 34% tariff hike, its chief executive Jacob Maroga said on Tuesday.

"If we do not get the right amount of increase this year... it means we have more risk in terms of security of supply," he told the National Energy Regulator of South Africa at the CSIR Convention Centre in Pretoria.

Maroga was making closing comments during Nersa’s two-day public hearings into Eskom’s application for a 34% interim price increase.

"We still have the process to go through to deal with the totality of what we require...," he said, adding that any immediate determination on an increase could not solve the parastatal's long-term financial uncertainty.

During the hearings, Eskom was accused of flouting the Municipal Finances Act by submitting its application late, and failing to provide sufficient information on why the steep increase was required.

Maroga said a lot of consultation and dialogue was required before Eskom could make a determination on the cash it needed.

Interim tariff hike

This process had not yet been finalised, hence the application for the interim tariff hike.

"In my view, as much as you need to respect deadlines, with the substantial amount of money we are talking about and the implications for the country we needed dialogue," he said.

The parastatal needed to "engage the shareholder", the state. It also needed to assess its ability to obtain funds through borrowing and whether it would be able to repay this funding.

"The emerging conclusion was that we put in an interim [application] to create space to deal with the funding model. That’s why we were not able to keep to deadlines," he said.

On the scant information provided to motivate the tariff hike, Maroga said he believed the application was sufficient.

However, he explained that the application was interim and that a more detailed explanation would be forthcoming in Eskom’s multi-year price determination.

- SAPA
Read more on:    csir  |  eskom  |  jacob maroga  |  electricity tariff hike
NEXT ON NEWS24X
SHARE:

Read News24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
0 comments
Comments have been closed for this article.
 

Inside News24

 
/Africa
 

This is why you should install iOS 8

Check out this video to see what iOS 8 has in store for you!

 
 

For chic geeks...

It’s THIS easy for someone to steal your ATM pin!
17 photo illusions that look so real
Check out the speed of this robo-cheetah!
New GIF keyboard on iOS for added fun!

Jobs in Cape Town [change area]

Property [change area]

Travel - Look, Book, Go!

Magical Massinga

Spend 5 nights at the gorgeous Massinga Beach Lodge in Mozambique and only pay for 4 from R13 220 per person sharing. Includes return flights, accommodation, transfers and romantic turndown. Book now!

Kalahari.com - shop online today

Pre-order your iPhone 6 at kalahari.com

Hurry and pre-order your own iPhone 6 now at SA’s favourite online store!

Bargain box – 60% off

Reduced prices, very limited stock. While stocks last. Hurry and shop now!

Mind blow low prices on electronics

Get either the Prestigio multiphone or Proline tablet 7” tablet for only R699. Offers valid while stocks last. Shop now!

30% off Barbie toys

Save 30% on all Barbie toys and accessories. Offer valid while stocks last. Shop now!

Baby extravanganza month at kalahari.com

Celebrate baby month with a wide range of awesome baby products. Offers valid while stocks last. Shop now.

OLX Free Classifieds [change area]

Samsung Galaxy s4

Mobile, Cell Phones in South Africa, Western Cape, Cape Town. Date October 24

Best bargain in big bay

Real Estate, Houses - Apartments for Sale in South Africa, Western Cape, Cape Town. Date October 25

VW Golf 6, 1.6 Trendline (Excellent condition)

Vehicles, Cars in South Africa, Western Cape, Cape Town. Date October 25

Horoscopes
Aquarius
Aquarius

Don`t judge so quickly or expect too much, be more accepting and understanding and make space for fun and spontaneity. ...read more

There are new stories on the homepage. Click here to see them.
 
English
Afrikaans
isiZulu

Hello 

Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.


Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Settings

Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.








Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.