Thursday, June 19, 2008

Solidarity says Nersa decision only resolves coal problem

By Henry Booysen
19 June 2008


Solidarity has welcomed Nersa’s decision to grant Eskom a rate increase of 27.5% and has expressed their relief of not considering the 53% increase.

According Solidarity spokesperson Jaco Kleynhans the increase provides for the electricity supplier’s rising primary energy costs, mainly coal.

“It does not, however, allow for expansion of Eskom’s capacity and the cost of demand management and we still have no idea how the solution to the electricity crisis is to be financed,” says Kleynhans.

Secretary General of Solidarity Dirk Herman says that if government does not take responsibity in financing Eskom them higher increases will be required.

“Eskom’s initial submission to Nersa only mentioned coal prices and the cost of demand management for the increase,” says Herman.

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