Legal Trends 2020

Advertise on Bizcommunity

Subscribe to industry newsletters

Nersa welcomes court decision on Eskom

The National Energy Regulator of South Africa (Nersa) has welcomed the decision by the High Court in Pretoria to dismiss an urgent relief sought by Eskom.
© Graça Victoria – 123RF.com
Eskom sought urgent relief to allow them to increase tariffs by 16.60% for the 2020/21 financial year, and by 16.72% for the 2021/22 financial year.

The High Court dismissed Eskom’s application on Monday for urgent relief.

“This judgment means that the Energy Regulator’s decision, made on 7 March 2019, regarding Eskom’s fourth Multi-Year Price Determination (MYPD4) for the control period of 2019/20 to 2021/22, remains in force,” Nerrsa said.

The regulator said it’s cognisant of the fact that the hearing of Part B of the review of the Energy Regulator’s decision on Eskom’s MYPD4 revenue application is still to take place.

South Africa's energy crisis has triggered lots of ideas: why most are wrong

Since late last year South Africans have, once again, been subjected to power cuts by the power utility, Eskom. The need for what's called loadshedding - planned power outages - led to the recent resignation of Eskom's chairperson and a flurry of concern about the current and future reliability of electricity supply...

By Seán Mfundza Muller & Mike Muller 23 Jan 2020


Eskom’s MYPD4 application was for revenues of R219bn, R252bn and R291bn for the 2019/20, 2020/21 and 2021/22 financial years, respectively.

“The Energy Regulator approved Eskom’s allowable revenue of R206,380bn for financial year 2019/20, R221,843bn for financial year 2020/21 and R233,078bn for financial year 2021/22. The approved allowable revenue resulted in average price increases of 9.41%, 8.10% and 5.22% for the financial years, respectively,” Nersa said.

In performing its duties, Nersa is guided by, among others, the Electricity Regulation Act, 2006 (Act No. 4 of 2006) and the regulatory framework.

“Nersa remains confident that its determination is consistent with the governing legislative and regulatory requirements,” the regulator said.
Get a daily news update via WhatsApp or sign up to our newsletters.


SOURCE

SAnews.gov.za
SAnews.gov.za is a South African government news service, published by the Government Communication and Information System (GCIS). SAnews.gov.za (formerly BuaNews) was established to provide quick and easy access to articles and feature stories aimed at keeping the public informed about the implementation of government mandates.
Go to: http://www.sanews.gov.za
Comment

Related

News