Finance officers for the country’s biggest cities on Thursday questioned Eskom’s ability to plan and forecast effectively.

Speaking at the last day of the National Energy Regulator of SA (Nersa) hearings into a proposed 53 percent tariff hike for Eskom, Kris Kumar of the Chief Financial Officers Forum for Metros said the regulator had to carry out an independent risk assessment to develop a functional and efficient risk management strategy for the power utility.

He questioned how Eskom could - within a matter of months after being granted an increase - return to the regulator to ask for a further substantial tariff hike, saying this indicated a lack of planning.

"We recommend an oversight committee be established to review Eskom’s entire financial profile, funding requirements as well as credit rating," he said.

Nersa must audit Eskom

Kumar also asked that Nersa audit Eskom to see if it was operating its power plants effectively.

He repeated the warning of earlier submissions saying a 53 percent increase would cause "major disruptions" in local government's ability to deliver services.

"We recommend that if (Eskom had) additional requirements, if justifiable, the increase be phased in at not more than two to three percent above CPI," he said.

"Eskom must obtain loans to make up the shortfall on its capital expansion programme," he added.

Windfall tax on exporting coal mines

He also suggested a windfall tax on exporting coal mines saying the funds could then be invested in primary energy.

Phillip von Wielligh, of TAU SA, said government should pick up the tab for Eskom’s expansion - saying the economy could not afford it at the moment.

"It is not for Eskom to bully the users," he said.

He said the recent power cuts could have been avoided if Eskom had listened to earlier suggestions.

Von Wielligh added that the government should drop its import tax on generators, saying the tax was already standing at 34 percent.

Sapa