South Africa’s largest power consumers are calling on the Department of Mineral Resources and Energy to urgently review the regulatory methodology being used by the National Energy Regulator of South Africa (Nersa) to set Eskom tariffs. The Energy Intensive Users Group (EIUG), whose mining and industrial members account for over 40% of the electrical energy consumed in South Africa, describes the current multiyear price determination (MYPD) methodology as outdated and warns that persisting with the framework will result in continuously rising electricity tariffs, which will further accelerate the utility ‘death spiral’ under way at Eskom.
