Eskom lowers tariff request
Reuters | Tue, 01 Dec 2009 09:06[miningmx.com] -- South African state power firm Eskom has cut its request for tariff rises to 35% from 45% a year over the next three years, the energy regulator said on Tuesday. Eskom's earlier application had been criticised by the ruling African National Congress, industry and trade unions in Africa's biggest economy. Economists and the central bank had warned of the potential inflationary impact. Thembani Bukula, a senior official of the National Energy Regulator of South Africa (Nersa), confirmed to Reuters that Eskom had cut its request to 35%. Bukula said Eskom had submitted its revised application for a tariff increase by the agreed deadline on Monday. "We are going to analyse the changes they have made and highlight them and give the public an opportunity to comment," he said, adding that only a week or two would be allowed for comment instead of the month given after the initial request. "The other dates we had set up for public hearings in January don't change and the decision will still be made on the 24th of February." Eskom's acting chairperson Mpho Makwana is due to give a media briefing on the tariff request at 12:30. He declined to comment on the reported cut in the requested hike. Eskom is recovering from a leadership struggle last month, which cost the jobs of its chairman and chief executive. Eskom has said it needs the increases to pay for its R385bn ($50bn) supply expansion programme to meet rising demand. Power outages early in 2008 crippled mines in the world's top platinum producer, also a major gold miner. Apart from the tariff increase, the utility has said it would rely on borrowing from capital markets and government loans to fund its expansion programme.
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