Part 1 Revenue Application: Multi-Year Price Determination ... - Eskom

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