Tuesday, June 30, 2015
Energy Analyst David Lipschitz Interviewed on CNBC Africa - by phone - Open Exchange Program - Interviewed by Tumisho Grater
The points I spoke about are:
1) NERSA: the price increase is not off, just delayed. (NERSA said "Eskom's documentation is not in order." I think Eskom will try for an increase in January so that municipalities can get ready.)
2) Government doesn't want to fund Eskom anymore. Eskom's financing status at "Junk" which means that debt financing is very expensive.
Normal financing isn't working anymore. We need to think differently.
3) Use Time of Use Tariffs for everyone in South Africa. Then people can choose what they want to pay, eg 50 cents per kWh between 10pm and 6am; R2 from 6am to 10pm and R4 at peak time (7 to 10am and 6 to 8pm).
4) Use Demand Response for everyone in South Africa. Then Eskom can do "load shedding" and switch off non-essential loads in peoples houses.
What I didn't mention is that Net Metering should also be implemented without a service fee. This will incentivise people to make electricity and especially to sell it at peak time. Sales can be at 40 cents per kWh, R1.60 per kWh and R3.20 per kWh and Eskom can pocket the difference between their buying and selling price.