Eskom's secret tariff plan revealed

And this just before the national energy regulator, Nersa, begins public hearings on January 11 on Eskom's controversial bid for a 35% per year increase in the price of electricity compounded over the next three years. The application is based on the energy utility's Integrated Resource Plan. In the interest of transparency, the Mail & Guardian has published a leaked copy of the Integrated Resource Plan for Electricity submitted with Eskom's first application -- originally for a 45%-a-year increase per year for three years.
The plan is an early draft, dated September 23 2009. If government had honoured the stipulations in the new National Energy Act, passed in November 2008, the public would have a final document to engage with ahead of the hearings. The Act requires the Minister of Energy to provide "any data and information reasonably required for the purposes of conducting analysis required for energy planning from any person" (Section 3(1)(a)). It is understood that the plan was developed by Eskom itself. With no transparency around the plan, it is not known if this has subsequently been updated. Several questions arise from examination of the plan: CONTINUES BELOW And perhaps most tellingly, the section on "Impact on the Economy" reads "THIS IS STILL OUTSTANDING". This section may well be completed in the new plan but as the documents has not been made public, we can only assume what Eskom's tariff hikes will mean for an economy recovering from a major recession. The hearings for Eskom's required revenue application for the period April 1 2010 to March 31 2013 will be held in all provinces from January 11 to 21, Nersa said in a statement. They start in Nelspruit, Mpumalanga and end in Midrand, Gauteng. Nersa will make its ruling on the application in February. Eskom is trying to raise funds for a R385-billion power expansion programme. It announced last month it had loaned $1,7-billion from five French banks. The loan would be used to purchase turbines for its coal-fired power stations, Medupi and Kusile. What do you think of the plan and the tariff hikes? Let us know in the comment box below.