The National Energy Regulator of South Africa (Nersa) has received Eskom’s application for the selective reopening of the Third Multi-Year Price Determination (MYPD3) decision for the 201516 to 201718 period.
Eskom’s selective reopener application requires cost recovery of R32.9 billion for Open-Cycle Gas Turbines (OCGTs) and R19.9 billion for the Short -Term Power Purchase Programme (STPPP).
“According to Eskom’s application, the selective reopener will result in a total price increase of 25.3% for 201516. This will consist of the 12.69% approved by the Energy Regulator, the 10.10% selective reopener for OCGTs, STPPP and a 2.51% increase in the environmental levy by 2ckWh,” said Nersa on Friday.
Eskom submitted its selective reopener application for consideration to the energy regulator on 30 April 2015.
This follows Eskom’s conclusion of its consultation process with the South African Local Government Association (SALGA) and National Treasury.
“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,” it said.
Source : SAnews.gov.za