Ex-Eskom baas reg to back hikes
|Published
NEEDED: Eskom increases are justified, De Ruyter claims. File photo
Ousted Eskom CEO Andre de Ruyter has been prepared to defend the 18.65% electricity hike the power utility granted by the National Energy Regulator of SA (Nersa), and had asked the courts to dismiss the application to have it reviewed and set aside.
This emerged from De Ruyter’s affidavit filed in the matter involving Eskom versus the UDM, ActionSA, Numsa and 16 others.
These groups want the court to force Eskom to provide reasonable notice of load shedding and Mineral Resources and Energy Minister Gwede Mantashe to make decisions and take steps to ensure the availability of electricity generation capacity.
They also want certain sectors such as safety and healthcare be exempted from load shedding.
The case is set to be heard on March 20 in the Gauteng High Court.
In his affidavit, De Ruyter said the application should be dismissed.
He said Eskom lost its ability to invest in new electricity generation in the late 1990s, due to factors completely out of its control.
“For approximately 15 years, Nersa has not permitted Eskom to recover cost-reflective tariffs, leading to a revenue shortfall of approximately R40 billion to R60bn per annum in recent years.”
He said Eskom recognised that load shedding was taking a heavy toll but said things could go from bad to worse.
“If supply and demand are not kept in balance on the national electricity grid, the grid will collapse and the entire country will experience a blackout or total loss in electricity supply.”
According to their projections, Eskom estimates that it could take up to several weeks to restore the grid, depending on the state of the grid when the blackout occurs.
“Without wishing to sound alarmist, the consequences of such a blackout would be catastrophic,” said De Ruyter.