Dear Affiliates and Members,
Please be advised that the National Energy Regulator of South Africa (NERSA) has released the final Multi-Year Price Determination (MYPD)Consultation Paper, inviting public input. Please see the attached document.
The MYPD process sets allowable revenue for Eskom using a cost-of-service, rate-of-return-based approach, with incentives for cost savings and efficient procurement. This process determines the tariffs across various customer categories. To ensure the implementation of new electricity tariffs by 1 April 2025, Eskom is required to present a NERSA-approved tariff to Parliament before 15 March 2025.
Scope of consultation
Stakeholders are encouraged to provide feedback on the MYPD6 application for the 2025/26 to 2027/28 financial years. Specifically, comments are requested on:
- NERSA’s discretion in applying the MYPD4 methodology.
- The impact of Eskom’s tariff request, considering the already approved Regulatory Clearing Accounts (RCAs).
The consultation paper outlines specific questions in these areas, and stakeholders are invited to respond to each of these.
AgriSA’s position
Agri SA plans to submit a formal written response and requests input from affiliates to shape our mandate on this matter. Key focus areas for our submission include:
- The impact of tariff increases on basic food prices for consumers.
- The effect on the competitiveness of export-oriented farmers in relation to international peers.
- The importance of Eskom not only increasing revenue but also reducing costs, optimizing business operations, and rightsizing its workforce.
- A comparison of the proposed tariff increases with similar service providers internationally, particularly those with comparable coal reserves and infrastructure.
We kindly request your input on the above points, as well as any additional considerations, by COB 25 October 2024.
Please send your feedback to Kulani Siweya at kulani@agrisa.org.za.
Thank you for your valuable contributions.
Enquiries:
Kulani Siweya, Economics