Eskom is planning to recover losses from corruption and loopholes in the MYPD rules by increasing your tariffs to recover over R66bn before the end of 2018.

Nersa invited the public to comment on Eskom’s request to increase tariffs to recover R66bn lost between 2014 and 2017 – the years included in the Public Protector’s “State of Capture Report”.

Please use the form below to add your name and comment.

If you object or support the increase, please give a reason why. Should you be at a loss for words, read the summary, live input or documents below the form. Feel free to copy and paste into the message area provided.

If you don’t take any action, your inaction will be regarded as tacit agreement with the increase. Top energy advisor Ted Blom is launching action to challenge this increase.

181261 comments sent so far.

Do you support Eskom's tariff increase application? (summary below)
Yes I doNo I do notNot fully

Check your email address is correct then hit send!

A copy of your message will be sent to you along with an automated proof of receipt. Check your junk mail folder if you can’t find it. [Supported by Dear South Africa – driving participative democracy]

LIVE FEED OF COMMENTS SENT

Displaying newest 5 comments sent. Reload the page to see more.

Hameeda
No I do not
Eskom is already ripping its customers and still they complaining. Will the money ever be enough ??? Untill they sort out the root of the problem (management and staff ) nothing will change. STOP ABUSING PUBLIC HARD EARNED MONEY
Bernice
No I do not
It is about time that Eskom start managing the financials and be privatize
sylvia
No I do not

eskom isnt sustainable - so called management is top heavy and not qualified to run this business at all. - too much corruption - i doubt if this protest will help but live in hope
LINDA
No I do not
WHY MUST THE PUBLIC AND INNOCENT PEOPLE PAY FOR THE CORRUPTION OF ESKOM'S TOP MANAGEMENT AND THE MISMANAGING OF ESKOM'S INCOME I.E. OUR PAYMENTS!! NO NO NO - LET THE ONES WHO ARE RESPONSIBLE - THE CORRUPT ONES, PAY BACK THE 'LOST' INCOME.
Sophia
No I do not
The reason I all ready do not have money to buy decent food cost of living so high how do management of Eskom expect us to live we are living under the bread line God help us !!!

SUMMARY 

  • Nersa is currently considering Eskom’s RCA (Regulatory Clearing Account) application for a refund going back to 2014-2017.
  • The total of Eskom’s claim amounts to some R66bn over the period.
  • Translated into tariff increases, this will amount to around 30% increase in the current tariff.
  • The secondary problem with these RCA claims, is that they become “embedded” in the tariff structure, and even after the R66bn is recovered, the tariff never reverts to the old level.
  • This MYPD methodology is thus defective as it never ceases the recovery, and secondly, encourages Eskom to build wild and untested assumptions into its tariff applications.
  • The defective MYPD rules also encourage Eskom to overspend – as it simply recovers such overspending from the public, also via the RCA provisions.
  • Besides they rules relating to Eskom’s tariffs being suspect and undefinable, the management of these rules between Eskom and Nersa is another issue of contention insofar as they do NOT inform the public timeously (before the relevant year end) that they are heading for losses which the public will end up funding at some later stage.
  • The further issue with the RCA’s over this particular years, is that they relate to the peak stealing years as included by the Public protector “State Capture Report”.
  • Whilst a preliminary audit might find that the amounts claimed are categorised under claimable headings, nobody has run an independent audit over Eskom’s numbers to isolate the impact and quantum of thieving.
  • If the above is true, the public are being asked to refund Eskom’s costs attributable to thieving by the “Zuptas”
  • If the above holds true, then it confirms that NERSA has NOT been conducting its oversight and Regulatory duties diligently.
  • If NERSA approves Eskom’s RCA for 20114/15, 2015/16 and 2016/17, amounting to some R66bn, it will result in an electricity tariff hike of some 30% and that will in turn result in further Enterprise closures, bankruptcies and job losses.
  • In addition Eskom still has to apply for MYPD4 which should extend to 2024.
  • Ideally, the new IRP/IEP should also be published by end 2018, to detail SA’s future energy requirements to 2040.

According to our initial estimates, Eskom will apply as follows:

MYPD4 due before end 2018

Period Est increase Domestic Mega Flex Correct *
c/kwh c/kwh c/kwh
Current 217 355 40
RCA 30% 282 462 42
2019 / 2020 20% 339 554 44
2020 / 2021 50% 508 831 46
2021 / 2022 30% 660 1080 48
2022 / 2023 30% 858 1404 50
2023 / 2024 30% 1116 1825 52
* Base year2006 plus Electricity inflation corrected

 

  • Thus the public will just continue funding the Eskom gravy train and the effects will compound over time.
  • Eventually this will become reflected in the exchange rate as the excessive electricity costs make SA increasingly uncompetitive until exports cease.

DOCUMENTS

Download NERSA’s revised timelines for public hearings

Download the NERSA invitation to comment on RCA and MYPD

Download the NERSA invitation to comment on Municipal tariffs

Download the Eskom RCA application to NERSA 2014/15

Download the Eskom RCA application to NERSA 2015/16

Download the Eskom RCA application to NERSA 2016/17