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