OVERVIEW ON THE MYPD3 PUBLIC
CONSULTATION PROCESS
PRESENTATION TO THE SELECT COMMITTEE ON
ECONOMIC DEVELOPMENT : 04 DECEMBER 2012
Contents
1.
2.
3.
4.
Overview of Eskom’s application
Our planned approach to the application
Information sharing session
The consultation process and determination
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Eskom’s application
• NERSA confirms that we have received an application from Eskom
• Five year application which proposes increases of 16 % per annum
over the period
• Application also includes a request for restructuring of tariffs
– To simplify residential tariffs but also protect the poor
– To recalculate tariff charges based on an updated cost to serve
study
– To unbundle tariff components to show cross subsidisation and
transparency
– To Revise Eskom’s time of use tariff to reduce the peak highdemand (winter) energy price
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Our planned approach
• NERSA is required by the Electricity Regulation Act to
allow an efficient supplier to recover its costs to supply
plus a fair rate of return
• To achieve this NERSA uses a MYPD methodology
based on a rate of return mechanism
• The summary the mechanism
– Allowable revenues = costs to supply + ROA
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MYPD Process/Procedure
• There are 6 pillars used in the MYPD determination
process:
 Pillar 1 : Planning
o Review of previous decisions and current regulatory rules
o Analysis of current/prevailing economic, political, social and
legal environment
o Draft Process plan that includes timelines etc
 Pillar 2: Organising
o The MYPD application is broken down into key
elements/teams for the ease of management of the work.
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MYPD Process/Procedure (Contd)
 Pillar 3: Analysing
o Actual analysis of the data received from Eskom
 Pillar 4: Consultation
o In MYPD , a broad spectrum of stakeholders are consulted
for their views and comments. Written comments are
solicited and Public Hearings are held in all provinces of
South Africa
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MYPD Process/Procedure (Contd)
 Pillar 5: Determination
o This is mainly the consolidation of all evidence that has been
gathered (spreadsheets, comments etc). After consolidation
of the evidence, the Regulator will consider the regulatory
objectives to be achieved including the public interest
 Pillar 6: Communication
o After the decision by the Energy Regulator,
communicated to Eskom and the Minister of Energy.
o NERSA then holds a media conference
it
is
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MYPD Process/Procedure (Contd)
 Public Consultation Processes
 Requests for written comments
 Discussions (Information Sharing) with
stakeholders and the public on Eskom’s application
 Radio Talk Shows (SABC & Community Radio Stations)
 SABC TV
 Public Hearings in all provinces
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Radio Talk Shows conducted
RADIO STATION
DATE
Thobela FM
31 October 2012
Lotus FM
07 November 2012
RSG
07 November 2012
SA FM
08 November 2012
Lesedi FM
12 November 2012
Umhlobo Wenene FM
14 November 2012
Ukhozi FM
16 November 2012
18 Community Radio Stations
19 November 2012
Good Hope FM
19 November 2012
Ligwalagwala FM
20 November 2012
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Public Hearings (15 – 31 January 2013)
PROVINCE
CITY/TOWN
DATE
Western Cape
Cape Town
15-01-2013
Eastern Cape
Port Elizabeth
16-01-2013
Kwa-Zulu Natal
Durban
17-01-2013
Free State
Bloemfontein
21-01-2013
Northern Cape
Kimberly
22-01-2013
North West
Potchefstroom
23-01-2013
Mpumalanga
Nelspruit
25-01-2013
Limpopo
Polokwane
29-01-2013
Gauteng
Roodepoort
30 & 31-01-2013
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Timelines for processing Eskom’s MYPD3 Application
ACTIVITY
DATE
Receipt of Eskom’s Application
18 October 2012
Publication of Application on NERSA
Website
(Request for written comments)
22 October 2012
Closing date for stakeholder comments on
Eskom’s MYPD3 application
20 November 2012
Public Hearings in all provinces
15 – 31 January 2013
Energy Regulator’s Decision on Eskom’s
MYPD3
application
28 February 2013
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Conclusion
• NERSA is committed to a transparent consultative process in
its decision making process
• Discussions with the general public and stakeholders will
provide a platform to interrogate the application
• NERSA will also ensure engagement with the following high
level stakeholders and decision makers
– PPC on Energy, Economic Development, Local Government,
Public Enterprises and NCOP;
– Department of Energy;
– Mayors of identified towns/cities; and
– Traditional Leaders in relevant towns/cities
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Thank You
Tel: 012 401 4600
Fax: 012 401 4700
Website: www.nersa.org.za
Physical Address:
Kulawula House
526 Madiba Street
Arcadia,0083
Pretoria
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