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Tariff will change according to fluctuations in LNG price.
By Moneyweb
13 Apr 2021 00:01
Global demand for LNG is expected to increase due to population growth, urbanisation, and increased preference for cleaner energy. Image: Supplied
Governmentâs proposed deal with Karpowership SA to buy electricity generated on its three floating power stations over a period of 20 years will expose consumers to considerable risk.
Maduna Ngobeni, acting chief operating officer of the Department of Energyâs office for independent power producers (IPPs), recently confirmed that among other things, fluctuations in the international price of liquefied natural gas (LNG) and the dollar/rand exchange rate will be passed on to consumers.
Government’s proposed deal with Karpowership to buy electricity generated on its three floating power stations over a period of 20 years will expose consumers to considerable risk.
Maduna Ngobeni, acting chief operating officer of the department of energy’s office for independent power producers (IPPs), recently confirmed that, among other things, fluctuations in the international price of liquefied natural gas (LNG) and the dollar/rand exchange rate will be passed on to consumers.
Other pass-throughs are carbon tax and environmental levies.
The proposed agreements form part of the department of energy’s risk mitigation power purchases from IPPs
Mike Schüssler of Economists.co.za warned that consumers could find themselves at the same disadvantage Eskom did with its historic price agreement to supply the Hillside aluminium smelters in Richards Bay: This was done at a tariff linked to, among others, the dollar-denominated price of aluminium set in London.
POOR SOUTH AFRICANS LIKELY TO BE HIT HARDEST BY LOOMING ESKOM TARIFF INCREASE safcei.org - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from safcei.org Daily Mail and Mail on Sunday newspapers.
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NATIONAL NEWS - The North Gauteng High Court has ordered that an amount of R10 billion be added to Eskom’s allowable revenue to be recovered from tariff customers in the 2021/22 financial year.
“This consent order follows Eskom’s application in terms of section 18(3) of the Superior Courts Act, 2013, that Eskom should be permitted to recover R23billion in the financial year 2021/22 as per the 28 July 2020 Court judgement,” the National Energy Regulator of South Africa (NERSA) said on Tuesday.
The above consent court order follows discussions and an agreement between NERSA and Eskom.
“The agreement was informed by the fact that NERSA has already taken decisions on other Eskom applications that will be implemented in the 2021/22 financial year, which had a direct impact on the application Eskom has made to the court.
South African consumers must brace for further double-digit electricity price hikes after a consent order handed down in the North Gauteng High Court has allowed debt-strapped Eskom to recover a further R10 billion from customers in 2021/22.
The National Energy Regulator of South Africa (NERSA) said consumers could expect price increases of more than 15% after the court ordered that an amount of R10 billion be added to Eskom’s allowable revenue to be recovered from tariff customers in the 2021/22 financial year.
The consent order follows Eskom’s application in terms of section 18(3) of the Superior Courts Act, 2013, that Eskom should be allowed to recover R23 billion in the financial year 2021/22 according to an earlier 28 July 2020 court ruling.