Nersa welcomes court decision on Eskom

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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.

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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.