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Powerships: Consumers will carry the risk


MONEYWEB
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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
Government’s 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 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. ....

Eastern Cape , South Africa , Richards Bay , Kwazulu Natal , City Of , United Kingdom , Maduna Ngobeni , Elize Kruger , Darryl Hunt , Chris Yelland , Department Of Energy , Dynamic Energy Consultants , World Bank , Energy Gwede Mantashe , Ryk De Klerk , Mineral Resources , Regulatory Clearing Account , Brent Crude , Korea Marker , Integrated Resource Plan , கிழக்கு கேப் , ரிச்சர்ட்ஸ் வளைகுடா , க்வஸூல்யூ நேட்டல் , நகரம் ஆஃப் , ஒன்றுபட்டது கிஂக்டம் , டார்ரில் வேட்டை ,

Powerships: Consumers will carry considerable risk


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. ....

Eastern Cape , South Africa , Richards Bay , Kwazulu Natal , City Of , United Kingdom , Maduna Ngobeni , Elize Kruger , Gwede Mantashe , Darryl Hunt , Chris Yelland , Dynamic Energy Consultants , World Bank , Ryk De Klerk , Regulatory Clearing Account , Korea Marker , Brent Crude , Integrated Resource Plan , கிழக்கு கேப் , ரிச்சர்ட்ஸ் வளைகுடா , க்வஸூல்யூ நேட்டல் , நகரம் ஆஃப் , ஒன்றுபட்டது கிஂக்டம் , டார்ரில் வேட்டை , உலகம் வங்கி , றய்க் டி எழுத்தர் ,