1 / 10

Electricity Pricing Minerals & Energy Parliamentary Portfolio Committee

Electricity Pricing Minerals & Energy Parliamentary Portfolio Committee. Thembani Bukula - Regulator Member: Electricity. Policies and Drivers. White Paper on Energy Policy of 1998 Cost reflective electricity prices Transparent subsidies Access to affordable electricity services

onan
Télécharger la présentation

Electricity Pricing Minerals & Energy Parliamentary Portfolio Committee

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Electricity Pricing Minerals & Energy Parliamentary Portfolio Committee Thembani Bukula - Regulator Member: Electricity

  2. Policies and Drivers • White Paper on Energy Policy of 1998 • Cost reflective electricity prices • Transparent subsidies • Access to affordable electricity services • National policies • Inflation targeting • 6% growth • Future generation capacity requirements • Funding and financing of debt • Regulatory objectives • Economic efficiency • Reasonable returns • Stable and predictable regulatory framework

  3. Price Regulation method • Rate of return (RoR) Methodology with incentives and penalties • R = Revenue allowed • E = Operating expenses • V = Asset base (property, plant and equipment) • d = Depreciation • w = Working Capital allowance (including Capital Work in Progress - CWIP) • R = Calculated RoR using Weighted Average Cost of Capital (WACC) R = E + (V – d + w) x r

  4. Key inputs

  5. Allowed revenues • The above percentage increases are to be effected on 1 April each year; • The 2006/7 and 2007/8 percentage increases were effected as shown above.

  6. Historic and Long-term Price path

  7. Price curves under 4 scenarios Typical Price Curve/Path

  8. Price curves under 2 scenarios Typical Price Curve/Path

  9. 30 April 2007 Eskom application • Eskom has applied for: • An increase in the Primary Energy costs • The Acceleration Capital Expansion program • An increase on operating expenditure • The Accelerated Demand Side Management (DSM) program • Changes to the Multi-Year Price Determination (MYPD) rules • The effective date of the changes be 1 April 2008

  10. Project Plan 30 April Application received from Eskom Stage 1 Stage 2 Stage 3 Stage 4 • Analysis and evaluation: • Primary energy • CAPEX • OPEX • DSM • 18 July 2007 • Price modeling and recommendations • Model various scenarios and select the best based on regulatory objectives • 31 August 2007 • Stakeholder consultation: • Publication of draft determination (7 – 21 September 2007) • Stakeholder workshop (26 September 2007) and update of draft • Approval by Regulator: • Approve first draft report • Publish for public hearings • Public hearings • Approve final report and determination • December 2007

More Related