Media invitation: Panel discussion and debate on the Eskom funding plan and price application, hosted by Solidarity

Brian Dames: Acting CEO of <a rel="nofollow" track="on" href="http://www.eskom.co.za/" linktype="link" target="_blank"> Eskom and COO of Eskom Generation, the company's largest division
Chris Hart: Senior economist at <a rel="nofollow" track="on" href="http://www.investmentsolutions.co.za/" linktype="link" target="_blank"> Investment Solutions , a provider of multi-manager investment portfolios, with assets under management of over R100-billion
Andrew Kenny: Consulting engineer, with degrees in physics and mechanical engineering, formerly of Eskom and senior research officer at the Energy Research Institute of the University of Cape Town
Mike Schüssler: Senior economist and partner of <a rel="nofollow" track="on" href="http://www.economists.co.za/" linktype="link" target="_blank"> Economists.co.za , a specialist economics consultancy to government, business and industry

The public hearings arranged by the National Energy Regulator of South Africa (NERSA) in February 2009 covered Eskom's application for an interim price increase in 2009. Former Eskom CEO Jacob Maroga indicated the interim application would cover primary energy and other operational cost increases. He called for an open discourse involving government, Eskom municipalities, industry, labour and other stakeholders, including the general public, to engage to develop a plan for the funding of Eskom's new-build programme.

Eskom's MYPD application submitted earlier this year asks for increases in the average price of electricity of 45% per annum for three consecutive years commencing April 2010, in order to fund the construction. This would cause the average electricity price to increase five-fold between 2008 and 2012 as follows:

Year: 2008 2009 2010 2011 2012
Increase: 1,27 x 1,31 x 1,45 x 1,45 x 1,45 = 5,08 x

This was met with shock within South Africa, and after initially indicating its support for the Eskom proposal, government requested alternative proposals and options from Eskom. Yesterday, Eskom announced its revised MYPD application with the increases reduced from 45% to 35% per annum for three consecutive years commencing April 2010. This would cause the average electricity price to increase four-fold between 2008 and 2012 as follows:

Year: 2008 2009 2010 2011 2012
Increase: 1,27 x 1,31 x 1,35 x 1,35 x 1,35 = 4,09 x

Eskom has called for open and broad-based engagement between all stakeholders on the matter, indicating that the funding plan was not just an Eskom matter, but a matter for the whole country.