Eskom to comply with Nersa revenue application requests

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The decision relates to condonation to deviate from meeting certain requirements of the multi-Yyear price determination (MYPD) methodology and the minimum information requirements for tariff application (Mirta).

In its reason for decision, Nersa guides Eskom in making assumptions for certain of the MYPD methodology and Mirta requirements that could not be met. As an example, Eskom is not in a position to attribute burn costs and volumes to particular contract types. This is due to coal stockpiles not being distinguished in accordance with each coal contract type. Nersa requires Eskom to use the purchase ratio for the coal burn rate. This will be done for regulatory purposes, which varies from the accounting treatment of coal costs.

Eskom will update the revenue application, with assumptions, as guided by Nersa for the relevant areas where condonation was not granted and submit to the regulator by 25 August 2017. Eskom has always provided extensive information for analysis.

The MYPD 3 period comes to an end by 31 March 2018, and Eskom wishes for a timeous revenue decision to implement from 1 April 2018, it said in a statement.