Nersa to address special pricing challenges with government
Energy regulator Nersa will address challenges that prevent the conclusion of more special pricing agreements between Eskom and large industrial customers with the government.
This comes after nine applications for short-term agreements from intensive users have been turned down due to an inflexible policy framework drafted by the Department of Mineral Resources and Energy.
A further application from South32 for a long-term agreement at its Hillside plant in Richards Bay was also rejected because the department has not yet finalised a policy framework against which Nersa can assess such agreements. Nersa stated that it can be considered at a later stage once the framework is available.
The agreements are aimed at assisting struggling intensive users to sustain jobs through discounted tariffs, while sustaining sales volumes for Eskom.
Minimum sales volumes are specified and discounts are limited to a certain minimum pricing level. The agreements also offer Eskom the right to interrupt electricity supply to such customers when it has supply constraints, according to agreed protocols.
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