Monday, October 26, 2009

More on Eskom's Proposed Tariff Increase Application - Mixed Messages

This Engineering News article points out how Eskom stated that if IPPs [Independent Power Producers]are excluded from its revenue requirement mix, that tariff increases would be lower. Such a statement is misleading and could lead to a public perception that IPPs are a "bad idea". While in a more recent Engineering News article, Eskom's chairman indicated that "Power from private companies should grow more rapidly" and went on to say "Independent producers should be able to make their case directly to the regulator." Meanwhile, have a look at this Greentech Media article which highlights more hidden costs not considered for the production of power from non-renewable sources.

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