Pretoria - Power parastatal Eskom has initiated its next tariff initiation by submitting its draft Multi-Year Price Determination (MYPD 3) to the SA Local Government Association (Salga) and National Treasury for comment.
Eskom is set to apply to the National Energy Regulator of SA (Nersa) for its third Multi-Year Price Determination (MYPD 3) this year, which will set out electricity prices for the period beginning 1 April 2013. This as the second MYPD2 expires at the end of March next year.
"Eskom initiated the process this week when it submitted a draft of its proposed MYPD 3 application to the SA Local Government Association and the National Treasury for comment, in compliance with the requirements of the Municipal Financial Management Act (MFMA)," it said on Friday.
The Act requires that organised Local Government and Treasury be given 40 days to comment on the application and that their inputs must be taken into account in the final application that is submitted to the regulator.
The MYPD 1 and MYPD 2 both spanned three years. In contrast, Eskom is proposing a five-year determination for MYPD 3 so as to ensure a predictable, longer-term price path for customers, investors and the country.
Public Enterprises Minister Malusi Gigaba must table the Nersa decision on the MYPD 3 to Parliament by 15 March 2013, with an extensive programme of public hearings and consultations preceding the decision.
In March, the regulator approved a reduced tariff increase of 16%, down from the original 25% granted in February 2010 for the power parastatal.
