OUTA commends NERSA stance against Eskom secrecy

Published Aug 11, 2017

Share

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.

Read also: 

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.

-BUSINESS REPORT ONLINE

Related Topics: