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Eskom wants to raise its tariff by more than 50 percent, the National Electricity Regulator of SA (Nersa) announced on Tuesday.
If granted, the increase will replace the 14,2 percent rise Eskom was allowed by Nersa in December 2007.
That increase is scheduled to come into effect from April 1.
"Eskom has applied for a revision of the price for 2008/9 from 14.2 percent to 53 percent increase [sic]or a 60 percent nominal increase," Nersa said.
It said Eskom wanted the revision because of what the utility said were its higher primary energy costs, and "accelerated demand side management" costs.
"In the light of the current electricity supply shortage and load shedding in the country, the energy regulator will give urgent attention to Eskom's application and make its decision after following due process."
Nto Rikhotso of Eskom's media desk confirmed earlier that the new application would be lodged on Tuesday afternoon but that she could not reveal the increase sought.
She said Nersa would open a public participation process once the request was lodged.
"It's their prerogative to communicate what we have submitted to them," she said.
In allowing a 14.2 percent hike last year, Nersa rejected Eskom's bid for 18.7 percent.
Eskom said at the time it needed the increase to maintain effective operations after a steep increase in coal costs and the need to finance capital expenditure.
Its managers are scheduled to receive performance bonuses of shares valued at R10-million at the end of March, 2008.
The increase - whether 142 or 53 percent - will follow a 2c/kiloWatt hour electricity levy announced last month by finance minister Trevor Manuel, and amid a new round of nationwide power cuts.
Reacting earlier to news media reports that the sought increase was 24 percent, trade union Solidarity said South Africans could not afford the increase.
It urged Nersa to reject the request.
More cheerful news from Eskom on Tuesday afternoon was that South Africans would probably not be left in the dark during the Easter weekend.
It said two of the nine generators that had been out of action because of "unscheduled maintenance" came back on line earlier in the day and two more were expected to come on line on Tuesday evening.
"However, load shedding will continue until after evening peak [9pm] as the wet weather continues," it said.
"The cold and rain have increased demand for electricity and adversely affeced coal handling at power stations."
Eskom said it was shedding up to 2500 megaWatts, and the risk of cuts would remain until Thursday.
Erica Johnson, Eskom's chief officer for networks, said: "We don't expect any load shedding over the long weekend as demand patterns are lower during holidays."
Earlier on Tuesday, before any units were restored, Eskom spokesperson Andrew Etzinger said the power situation was "extremely serious".
He warned that in the unlikely, but possible, event of more generator failures, power to mining companies would have to be cut.
Rikhotso told Sapa that mines were operating on rationed power and the long-term plan was that this would be "ramped up" in stages.
An announcement on Monday that Gold Fields had been allocated additional power for use at its Kloof and Driefontein gold mines formed part of this process.
"It's going to be done for all of them," she said.
Power shortages forced gold and platinum mines to shut down for five days in January 2008.
Solidarity announced on Tuesday that its leadership had resolved at an emergency meeting to prepare for a possible class action on behalf of mineworkers "should Eskom persist with plans to reduce electricity supplies to mines".
It said it would send a letter to Eskom warning that workers who lost their jobs due to negligence on the part of Eskom or the government would be entitled to claim damages.
"Reduced electricity supplies to mines will almost certainly result in job losses," it said.
"Power provision at 90 percent of normal consumption [the current level to most mines] can cost as many as 20 000 jobs."
Solidarity would also ask resident Thabo Mbeki to appoint an independent task team to support him in seeking a solution to the electricity crisis. - Sapa
If granted, the increase will replace the 14,2 percent rise Eskom was allowed by Nersa in December 2007.
That increase is scheduled to come into effect from April 1.
"Eskom has applied for a revision of the price for 2008/9 from 14.2 percent to 53 percent increase [sic]or a 60 percent nominal increase," Nersa said.
It said Eskom wanted the revision because of what the utility said were its higher primary energy costs, and "accelerated demand side management" costs.
"In the light of the current electricity supply shortage and load shedding in the country, the energy regulator will give urgent attention to Eskom's application and make its decision after following due process."
Nto Rikhotso of Eskom's media desk confirmed earlier that the new application would be lodged on Tuesday afternoon but that she could not reveal the increase sought.
She said Nersa would open a public participation process once the request was lodged.
"It's their prerogative to communicate what we have submitted to them," she said.
In allowing a 14.2 percent hike last year, Nersa rejected Eskom's bid for 18.7 percent.
Eskom said at the time it needed the increase to maintain effective operations after a steep increase in coal costs and the need to finance capital expenditure.
Its managers are scheduled to receive performance bonuses of shares valued at R10-million at the end of March, 2008.
The increase - whether 142 or 53 percent - will follow a 2c/kiloWatt hour electricity levy announced last month by finance minister Trevor Manuel, and amid a new round of nationwide power cuts.
Reacting earlier to news media reports that the sought increase was 24 percent, trade union Solidarity said South Africans could not afford the increase.
It urged Nersa to reject the request.
More cheerful news from Eskom on Tuesday afternoon was that South Africans would probably not be left in the dark during the Easter weekend.
It said two of the nine generators that had been out of action because of "unscheduled maintenance" came back on line earlier in the day and two more were expected to come on line on Tuesday evening.
"However, load shedding will continue until after evening peak [9pm] as the wet weather continues," it said.
"The cold and rain have increased demand for electricity and adversely affeced coal handling at power stations."
Eskom said it was shedding up to 2500 megaWatts, and the risk of cuts would remain until Thursday.
Erica Johnson, Eskom's chief officer for networks, said: "We don't expect any load shedding over the long weekend as demand patterns are lower during holidays."
Earlier on Tuesday, before any units were restored, Eskom spokesperson Andrew Etzinger said the power situation was "extremely serious".
He warned that in the unlikely, but possible, event of more generator failures, power to mining companies would have to be cut.
Rikhotso told Sapa that mines were operating on rationed power and the long-term plan was that this would be "ramped up" in stages.
An announcement on Monday that Gold Fields had been allocated additional power for use at its Kloof and Driefontein gold mines formed part of this process.
"It's going to be done for all of them," she said.
Power shortages forced gold and platinum mines to shut down for five days in January 2008.
Solidarity announced on Tuesday that its leadership had resolved at an emergency meeting to prepare for a possible class action on behalf of mineworkers "should Eskom persist with plans to reduce electricity supplies to mines".
It said it would send a letter to Eskom warning that workers who lost their jobs due to negligence on the part of Eskom or the government would be entitled to claim damages.
"Reduced electricity supplies to mines will almost certainly result in job losses," it said.
"Power provision at 90 percent of normal consumption [the current level to most mines] can cost as many as 20 000 jobs."
Solidarity would also ask resident Thabo Mbeki to appoint an independent task team to support him in seeking a solution to the electricity crisis. - Sapa
Source
This is insane. And I thought that Telkom was bad.
