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

Overview of Multi-Year Price Determination
2013/14–2017/18 (MYPD 3)
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the five years of the MYPD 3 period, followed by average price increases of 9% for a further
five years thereafter (MYPD 4), and thereafter annual increases of 5%. The projected price
path for electricity is 102 c/kWh compared to the IRP 2010 price path that reaches 110
c/kWh in real terms in 2030/31.
Further findings were as follows:
Eskom would have to raise approximately R1.1 trillion in debt between 2013/14 and
2030, with a maximum level of debt per year of R60 billion in 12/13 real terms.
IPPs would incur a projected total cost of close to R750 billion from 2013/14 to 2030.
The costs incurred during MYPD 3 would total about R140 billion. Of this, about 80%
would go to the renewable energy IPP programme. IPP costs are offset against
deductions in Eskom‟s primary energy cost.
Table 49 indicates the impact of 9,200MW of the renewable energy IPP programme in
MYPD 3.
Table 49: Financial impact to 2030 for the 65% Eskom build scenario
R' million
Eskom Primary energy
IPP's
Operating costs
Capex
Debt required
Interest costs
Revenue
Sales (TWh) 1,142
MYPD3 2014~2018 MYPD4 2019~2023 MYPD5 2024~2028 2029~2031 Total IRP 2030
309,439
139,532
309,536
495,362
333,771
156,454
1,206,697
429,448
204,826
526,248
1,035,816
427,302
197,303
2,358,214
Some key financial and technical results are presented in a combined figure to understand
the trade-offs between certain parameters. For example: a reduction in the debt to EBITDA
1,265
ratio will result in an increase in the leverage ratio.
675,609
222,395
757,414
1,376,142
271,521
340,438
3,269,978
1,506
516,482
172,137
549,659
433,469
36,000
105,051
2,546,062
995
1,930,977
738,890
2,142,857
3,340,789
1,068,593
799,246
9,380,952
4,908