Johannesburg - This decission overrules Eskom's desire to keep key operating costs secret.
Eskom had applied to NERSA (National Energy Regulator) for permission to keep certain costs information secret, largely on the grounds
that it was unable to provide such detailed information.
OUTA raised an
objection to Eskom’s secrecy application and provided a detailed written and verbal
submission to NERSA.
OUTA’s Portfolio Director of
Energy, Ted Blom, says “We’re pleased that NERSA has instructed Eskom to
provide the information and, as such, has acted in favour of the public”.
“This is a significant
development towards ensuring transparency and detailed input regarding the
pricing of electricity”.
The detailed information
related to extensive operating costs must now be provided to NERSA by 27
August, as part of Eskom’s tariff application for 2018/19.
OUTA’s Chairperson Wayne
Duvenage says “We are furthermore concerned at the comment by Eskom’s
spokesperson Khulu Phasiwe that ‘we have no choice but to adhere to the
decision”.
OUTA believes that Eskom
does have the choice to provide both NERSA and the public with all this detailed
information, which should be available at the click of a mouse. This is not
rocket science, but instead is basic operational management information that
Eskom ought to have on an hourly, weekly, monthly and annual basis.
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It was OUTA’s contention
that Eskom was reluctant to display this information in detail, over the past
decade, as it will show how inefficiently the organisation has been managed and
how exorbitant its operating costs have become. When this was shown against the
backdrop of the massive bonus that Eskom’s leadership has paid itself, the
public and NERSA would have significant questions that require answering.
“We believe that this added
level of transparency will highlight Eskom’s transgressions that have been
invisible in the past, such as the expensive Gupta coal contracts,” said Blom.
NERSA allowed Eskom
exemption from providing two categories of information: a temporary exemption
on the valuation of the regulatory asset base, but this must be provided for
the next price application; and an exemption on the deferred debits and
credits, as this related to an aspect that isn’t part of the pricing
application.
The information was legally
required in terms of the Multi-Year Price Determination (MYPD) and Minimum
Information Requirements for Tariff Application (MIRTA), which since 2016
include increased disclosure requirements, a result of Blom’s fight against
corruption prior to 2016.