Structural adjustment must precede Eskom lifeline, says economist
The National Energy Regulator of SA (Nersa) needs to find a short-term solution to help Eskom to get out of its financial crisis but this should be conditional on an immediate structural adjustment programme, Henk Langenhoven, chief economist at the Chamber of Mines, said on Friday. He was one of several presenters at Nersa’s three-day public hearings in Gauteng into Eskom’s request for a 19.9% increase in its tariff for 2017-18. By the end of the second day, the only issue on which presenters have disagreed is whether Eskom should be given a zero tariff hike or one in line with inflation. They have all rejected the power utility’s arguments for a 19.9% increase. Eskom’s application comes after a slew of revelations of corruption and mismanagement at senior levels in the organisation at the same time when the utility battles to complete a costly capital expansion programme and electricity sales are falling in a weak economy. Langenhoven said on Friday by the end of the first quarter...
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