Mpofana Key issues Process of upgrading the network and the - PDF document

NERSA PUBLIC HEARING Mpofana

Key issues � Process of upgrading the network and the substation to cater for higher capacity or customer demand � Increase that Eskom has applied is to be transferred to consumers � Need to improve infrastructure � No capacity to implement the inclining block method in current year as this method required statistical data and systems to be set up

Key issues � New tariff for indigent customers from 64 cents to 74 cents per KW which is 16 % increase therefore the increase will not disadvantage the poor. � Capital investment of R 3 million to reduce distribution losses through procurement of transformers � Provision of free basic electricity to domestic households at a cost of R 1 698 000 ( first 50 KW) � Equitable share not sufficient as the level of indigence is high

Key issues � The proposal is for the year while we gear for compliance of the Regulators restrictions. � The income of the municipality is rates and electricity while households <R75 000 do not pay rates and majority of households <R 75000 will be on prepaid meters. � Maintenance costs associated with the network are above what we can finance through normal operations( cost of electrical engineer) � Commercial sector which takes on avg. 64000 mega watts per annum( Textile sector)

� Thank you