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 50: Movement in Capital expenditure from 65% to 100%<br />
R' million<br />
Corporate, Distribution & Transmission<br />
Total new build<br />
Nuclear<br />
Solar and CSP<br />
Wind<br />
Gas<br />
Coal<br />
Generation - technical capital expenditure<br />
Total capex<br />
Page 117 of 144<br />
The change in the capital expenditure profile is due to the additional build on wind and gas<br />
of 400MWs and 2300MWs respectively.<br />
Financing the amount of debt needed to fund such expansion, while still covering <strong>Eskom</strong>‟s<br />
operating costs and depreciation, would require average price increases of 20% per year for<br />
five years (MYPD3), followed by 11% in 2018/19 and 9% for a further four years (MYPD 4),<br />
and thereafter 5% annual price increases. The projected price path for electricity is 102<br />
c/kWh compared to the IRP 2010 price path that reached 110 c/kWh in real terms in<br />
2030/31.<br />
Further findings were as follows:<br />
<strong>Eskom</strong> would have to raise approximately R1.1 trillion in debt between 2013/14 and<br />
2030, with a maximum level of debt per year of R60 billion in 12/13 real terms.<br />
IPPs would incur a projected total cost of close to R720 billion from 2013/14 to 2030.<br />
The costs incurred during MYPD 3 are approximately R140 billion. Of this, about 80%<br />
would be for the renewable energy IPP programme. IPP costs are offset by deductions<br />
in <strong>Eskom</strong>‟s primary energy cost.<br />
The findings are similar to that of the 65% due to the incremental change in the build<br />
profile. Table 51 indicates the incremental impact on the financial position when <strong>Eskom</strong><br />
builds 100%.<br />
MYPD3 2014~2018 MYPD4 2019~2023 MYPD5 2024~2028 2029~2031 Total IRP 2030<br />
-<br />
3,278<br />
-<br />
-<br />
3,278<br />
-<br />
-<br />
5<br />
3,283<br />
139<br />
38,012<br />
-<br />
-<br />
14,287<br />
23,725<br />
-<br />
591<br />
38,742<br />
137<br />
13,604<br />
-<br />
-<br />
-<br />
13,604<br />
-<br />
340<br />
14,081<br />
239<br />
-<br />
-<br />
-<br />
-<br />
-<br />
-<br />
193<br />
433<br />
515<br />
54,894<br />
-<br />
-<br />
17,565<br />
37,329<br />
-<br />
1,129<br />
56,538