Tag Archive | multi price year determination

Eskom looks at cutbacks, maybe rebates

Eskom reviews whole process of rebates…

eskomEskom has placed its energy efficiency rebates for businesses and homes on hold pending a review of financial constraints after being with left with , the spokesperson says, a shortfall of R7.9bn when granted the third Multi-Year Price Determination (MYPD) period until 2018. All this compared with the R13.09bn it sought.

The review to curb on costs would affect new projects that were to be implemented in the next financial year and a review is being conducted on present rebates.

Cannot maintain “aggressive” style

As part of a programme of cutbacks, new general manager Andrew Etzinger has confirmed that the lower-than-applied for funding meant that Eskom could not sustain such an “aggressive programme” at the same levels whilst, he said the group was in discussions with government on alternative funding models.

Etzinger stated that the benefits of current integrated demand management (IDM) programmes were obvious and such interventions had assisted with the country’s power situation. With savings of about 3 600 MW since inception, the IDM programmes have established capacity in megawatt equivalents, to an average power station. Without those savings, South Africa would have been in daily load shedding since 2008, Etzinger said.

Energy targets outlined

In the MYPD2 period, Eskom spent R5.4-billion on the current IDM interventions and achieved savings of 1 200 MW over the three-year period. For the current financial year, Eskom is aiming to achieve savings of 379 MW through energy efficiency interventions and is targeting 240 MW in the next financial year. Hence the cut backs, he said.

Eskom says, “The residential mass roll-out was the largest contributor to demand savings in the 2013 financial year. The programme is based on a free bulk roll-out of a “basket of technologies”, focusing on replacing inefficient lighting and implementing energy saving technologies and load control devices in the residential sector.”

Since inception in October 2011, about 245 projects have been registered for the standard offer, realising demand savings of 118 MW and energy savings of 478.6 GWh. More than 4 800 projects have been registered for the standard product programme, which started in January 2012, realising demand savings of 122.7 MW and energy savings of 555 GWh.

Presumably Eskom with its current statement means that any new programmes will not be started and it will review current arrangements.

Etzinger stressed, however, that while the IDM interventions were temporarily on hold, Eskom would continue to benefit from the savings achieved through the projects that are implemented on an ongoing basis with agreement with the parties involved.

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