Parliament on Multi Year Price Determination (MYPD3) developments

NERSA briefs energy committee on MYPD3

The Portfolio Committee on Energy expressed concern and frustration about the lack of information from the National Energy Regulator of South Africa (NERSA) and Eskom regarding the problems of load shedding and tariff increases. The information presented by NERSA on the extent of the electricity challenge was found to be useful by the Committee but members of the Committee were concerned that this kind of information is not disseminated to the general public.

The Committee is on a week-long oversight visit in Gauteng, on day one of the oversight, the Committee met with NERSA. The Committee received a briefing on the recent developments of the Multi Year Price Determination (MYPD 3) re-opener  that was denied by the regulator.

NERSA gave an analysis on why the 25% tariff increase was not approved. Chairperson for the Committee Mr Fikile Majola said it would be important that Eskom and NERSA have a meeting in one room so that issues are not raised in isolation. The Committee was of the view that a joint meeting with (NERSA and Eskom) should be set so that challenges that are facing Eskom can be dealt with immediately by both entities.

Mr Majola questioned if NERSA had a plan in place with timeframes that would assist Eskom in dealing with its demand for electricity and addressing maintenance of its power  plants. “You cannot pump money if there are no plans in place with action plans and timeframes”, he said.

The Committee was of the view that statements emanating from Eskom regarding load shedding are confusing and questioned the role the regulator would play in explaining the contradictory information that Eskom puts in the public domain.

The Committee will visit the South African Nuclear Energy Corporation of South Africa (Necsa) in Phelindaba tomorrow, 22 July 2015.

Enquiries:
Yoliswa Landu
Tel: 021 403 8203
Cell: 081 497 4694
E-mail: ylandu@parliament.gov.za

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