Part 1 Revenue Application: Multi-Year Price Determination ... - Eskom
Part 1 Revenue Application: Multi-Year Price Determination ... - Eskom
Part 1 Revenue Application: Multi-Year Price Determination ... - Eskom
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Overview of <strong>Multi</strong>-<strong>Year</strong> <strong>Price</strong> <strong>Determination</strong><br />
2013/14–2017/18 (MYPD 3)<br />
Table 47: Assumptions on capital and fuel costs per technology<br />
<strong>Price</strong> path:<br />
Page 111 of 144<br />
The price path assumed over MYPD3 will allow <strong>Eskom</strong> to reach standalone<br />
investment grade credit status by 2017/18.<br />
The Return on assets (ROA) applied is the lower of the return of 8.16% as<br />
determined by Nersa in MYPD 2 and a return required to maintain investment grade.<br />
Sales growth will be 1.9% for the MYPD 3 period, after which it will increase to IRP<br />
2010 targets until 2030, after which it will return to 1.9% per year.<br />
Funding:<br />
Other:<br />
Funding of the expansion for the generation and network requirements is provided<br />
through debt and tariffs only.<br />
Debt capacity is assumed at R60bn per annum in 12/13 real terms.<br />
No equity injections are assumed throughout the period to 2030.<br />
IPP contracting periods are assumed to be between 15 to 20 year for renewable<br />
technologies and 40 years for coal technologies.<br />
No carbon taxes will be implemented over the period to 2030.<br />
No dividend payments to shareholder will occur to 2030.