Busa calls for new Eskom funding model

Business Unity South Africa has called for a new funding model for Eskom as well as a change in its regulatory regime. “We are very concerned about the leadership issues at Eskom and in the state-owned entities in general,” said Busa CEO Jerry Vilakazi. “We aim to engage actively with government in 2010 about our concerns and what we believe are possible solutions.” Having made a formal submission to the National Energy Regulator of South Africa (Nersa) in December on Eskom’s proposed tariff rate increases, Vilakazi said it was clear that Eskom was not in a position to meet the energy needs of South Africa. “Increasing tariffs yearon- year is not a solution. Tariff increases cannot be the only instrument in creating capacity. Eskom can no longer be both referee and player.” He said Eskom’s requested tariff increase of 35% needed to be critically evaluated even if it was some 10% less than its initial request of 45% per year for the next three years. “We have done considerable work in recent years on the security of energy supply in South Africa and it will remain high on our 2010 agenda