South Africa: Tough questions on first day of tariff hearings

The National Energy Regulator of South Africa (Nersa) began a two-day public hearing on 23 June on Eskom’s request for an immediate tariff increase. Of particular concern was the problem posed to municipalities of an immediate increase in the cost of the power they resell as they are no longer able to increase the sale price of electricity during the year. There were numerous calls for the government to consider raising funds by other means, in particular through private capital and additional debt. However, Eskom chief executive Brian Molefe rejected privatisation for the time being. Nersa is set to make a decision on the application on 29 June.