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Eskom: Information war hots up
09/04/2008 11:47 - (SA)
Sherilee Bridge
Johannesburg - Power utility Eskom said on Wednesday that it had "applied only for certain parts of its application to the National Energy Regulator of SA (Nersa) to be kept confidential".
This comes two days after Nersa agreed to keep "commercially sensitive" information on its proposed 53% tariff increase secret.
However, the decision has incited criticism from the Democratic Alliance (DA) and trade union Solidarity.
In separate statements both said electricity consumers were entitled to know why the increase was needed.
While the DA said there were no substantial grounds for Eskom to keep information regarding the tariff hike a secret since the utility is a public enterprise owned by the state and financed by public money.
Solidarity said the secrecy plea showed "lack of transparency".
Eskom held a meeting with Nersa on the issue on Monday, the day before Nersa released a draft consultation paper and an amended copy of Eskom's application for public comment.
"The business-sensitive nature of the information relates to coal prices, Eskom's negotiations with mining companies and sensitive commercial information on energy efficiency," Eskom said in a statement.
"Our submission to Nersa is comprehensive and detailed. However, disclosure of current pricing information would weaken Eskom's bargaining position with coal suppliers and energy efficiency suppliers," the utility said.
It insisted that disclosure of price targets and assumptions in any negotiation would "unfairly damage the position of one of the parties".
Coal stockpile
Eskom is in the midst of negotiating coal prices for additional coal it urgently requires to return stockpiles at its power stations to internationally accepted levels, and to boost generating capacity in an attempt to satisfy booming electricity demand.
The utility said last week that its coal stockpiles averaged 12 days, still eight days short of its 20-day stockpile and 23 days short of the 35-day stockpiles it needs to get through the looming winter season.
Nersa said in its draft consultation paper on Eskom's application for increased tariffs that of the extra 45m tonnes of coal it had to procure over the next two years, about 12m tonnes was needed to replenish stockpiles back up to 35 days.
The utility said last week that it had already secured 39m tons, leaving only 6m tons to be negotiated.
All this coal is procured at a price premium from the spot market.
Eskom said it was "quite possible" that disclosure of its price targets would result in the company securing coal contracts at a higher price.
"This, in turn, would ultimately lead to still higher prices for consumers," it warned.
This may be the reason behind Nersa agreeing to keep parts of the application confidential.
- I-Net Bridge
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