South Africa - 02

South Africa: Eskom Tariff Application Supports Shift to Gas

On 23 June Eskom defended its application for a 12.61% tariff increase during public hearings at NERSA. According to acting Eskom CEO Brain Molefe, the tariff increase will allow Eskom to buy electricity from independent power producers (IPPs) and cover diesel purchases for its open-cycle gas turbines (OCGTs). Given that Eskom has received above-inflation increases averaging 22% over the past seven years, the application has been met with strong resistance from both consumers and businesses. However, the application underscores the country’s energy supply challenges and the important role that gas may play in the energy mix, especially as feedstock for Eskom’s OCGTs in the short term.

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