Question NW498 to the Minister of Finance
14 March 2016 - NW498
Van Dalen, Mr P to ask the Minister of Finance
Whether the National Treasury plays any oversight role in the National Energy Regulator of South Africa’s tariff determinations to ensure the long term financial viability of Eskom; if not, why not; if so, what are the relevant details?
Reply:
The National Treasury plays an oversight role with regard to levy increases / decreases for the gas and petroleum pipeline levies in terms of both the Gas Regulator Levies Act and Petroleum Pipelines Act.
The Minister of Energy’s permission is required to prescribe a levy on licensed electricity generators as per the Electricity Act of 1987.
With regards to the electricity tariff, the National Energy Regulator of South Africa, prior to making any determination, undertakes a public consultation process on any proposed adjustment of Eskom’s tariffs. As part of this process, the National Treasury provides extensive written inputs to NERSA, which amongst others, considers the long term viability of Eskom.