5 July 2012 – Eskom is to apply to the National Energy Regulator of South Africa (Nersa) for the third multi-year price determination (MYPD 3), which will set out electricity prices for the period which begins on 1st of April 2013. The second multi-year price determination (MYPD2) expires at the end of March 2013.
Eskom initiated the process in June 2012 when it submitted a draft of its proposed MYPD 3 application to the SA local government association and the national treasury for comment, in compliance with the requirements of the municipal financial management act (MFMA). The Act requires that organised local government and the national treasury must be given 40 days in which to comment on the application and that their inputs must be taken into account in the final application which is submitted to Nersa.
In contrast to MYPD 1 and MYPD 2, which both spanned three years – Eskom is proposing a five-year determination for MYPD 3 to ensure a predictable, longer-term price path for customers, investors and the country.
The minister of public enterprises must table the Nersa decision on the MYPD 3 to parliament by 15th of March 2013. An extensive programme of public hearings and consultation precedes the decision.