The Energy Regulator has approved the Service Quality Incentive (SQI) Framework for Eskom’s Generation Division.
This is just one of various decisions approved by the National Energy Regulator of South Africa (NERSA), at its meeting number 279, last week.
In a statement, NERSA said the Framework was developed to improve security of supply by incentivising Eskom Generation to improve its performance.
This was done to help increase the Energy Availability Factor (EAF) and decrease the Unplanned Capability Loss Factor (UCLF).
NERSA, said in a statement, “the Framework recognises that a reliable generation sector is key to ensuring security of supply and reducing load-shedding. This is vitally important to ensure economic growth, social well-being, and the ability of the economy to provide much-needed jobs.”
The incentives will be based on reliability indices that will be used to measure Generation performance.
The indices are Energy availability Factor and the Unplanned Capability Loss Factor (UCLF).
In response, to Martin Nel’s comments about the decision, on social media, Charles Hlebela, Spokesperson of NERSA, clarified the decision.
“The Eskom application is premise on two applications. The current Eskom application is a revenue requirement that NERSA must consider, in line with the Electricity Regulation Act, Multi-year Price Determination Methodology and Stakeholder inputs through the public participation process.
The end stage of the revenue requirement, is what is termed allowable revenue.”
Hlebela said in a statement, allowable revenue, is the amount Eskom will be entitled to recover in each financial year.
” It is fundamental to highlight that allowable revenue, is not an increase to an individual customer or end user tariff.”
On Monday morning, NERSA has a Special Electricity Subommittee Meeting.
One of the reports to be tabled at the meeting, is the approval of the publication of the paper and revenue application of Eskom’s 6th Multi-year Price Determination Methodology.
The meeting is also broadcast live via social media platforms.
Picture: Eskom