Pretoria - Eskom has applied to the National Energy Regulator of South Africa (NERSA) for the evaluation and approval of the regulatory clearing account (RCA) balance for the first year of the third multi-year price determination (MYPD3) amounting to R22.8 billion.
The MYPD methodology requires Eskom, after financial year end, to submit its RCA application to NERSA based on audited financial statements.
NERSA’s regulatory rules, or the MYPD methodology, allows Eskom to adjust for the over or under recovery of preceding years’ regulated costs and revenues through the electricity tariffs in subsequent years, said Eskom on Thursday.
NERSA will review Eskom’s submission and undertake a prudency review of the costs as required by the methodology.
“This will inform the decision on the quantum of the RCA. Once the quantum is determined, NERSA will decide on the liquidation of the balance which will inform the adjustment of electricity tariffs.
“Eskom looks forward to the continuing constructive relationship with NERSA to ensure that the RCA process is efficient and timeous,” said the power utility.
NERSA approved a five year tariff for Eskom under its MYPD3 determination covering a period from 2013/14 to 2018/19.
The difference in actual costs and revenues, subject to NERSA methodology, compared to the allowed revenue and cost in the MYPD3 determination gives rise to the RCA balance. – SAnews.gov.za
