The National Energy Regulator of South Africa (Nersa) did not approve Eskom’s application for a 25.3% tariff hike for 2015/16 at its meeting on 13 May and instead instituted a fast-track public-consultation process, which would culminate in a determination by 29 June. Spokesperson Charles Hlebela stated that Nersa would entertain written comments on Eskom’s application until 15 June. It would also host public hearings in Gauteng on 23 and 24 June, and would announce its final decision on 29 June.
Eskom had applied for a selective reopening of the final three years of the third multi-year price determination (MYPD3) decision, which began on 1 April 2013 and will continue until 31 March 2018. Through the application, the utility was seeking approval to increase its 2015/16 tariffs to 25.3%, inclusive of the 12.69% already granted for the current financial year. An additional 10.1% was attributed to the extra costs associated with operating the open-cycle gas turbines (OCGTs) for extended periods, as well as the extension of the short-term power purchase programme (STPPP). The 2.51% balance, meanwhile, related to the 2c/kWh increase in the environmental levy announced by Finance Minister Nhlanhla Nene in February.