Nersa to announce Eskom tariff application decision next week

Monday, December 4, 2017

The National Energy Regulator of South Africa (Nersa) will announce its decision on Eskom’s tariff hike application next week.

The regulator was due to announce its decision with regards to the power utility’s request on Thursday but postponed to give itself more time to conduct a thorough analysis of the application.

Eskom is asking Nersa for a 19.9% average increase in electricity tariffs for 2018/19 that will result in total allowable revenue of R219.5 billion.

“Nersa announced today that the decision on Eskom’s revenue application for the 2018/19 financial year will be made on 13 December 2017. Nersa initially planned to make the decision on 7 December 2017.

“The date has been changed due to more time being required to conduct a thorough analysis of Eskom’s application and to take stakeholders’ input received during public hearings and from written submissions into consideration,” said Nersa on Monday.

Last month, Nersa extended public hearings into Eskom’s revenue application in Gauteng.

The regulator extended the public hearings due to the large number of registrants to present at the hearing. The countrywide public hearings, which got underway on 30 October, were due to conclude in Gauteng on 17 November but were extended to 20 November.

Speaking at the last day of the hearings held in Midrand, Eskom Interim Group Chief Executive Sean Maritz said the utility has adopted a five-path plan to rebuild a robust governance process at the utility, which includes strengthening general internal ethics and fraud framework.

At the time, Eskom said the regulator’s public hearings have offered it an opportunity to share the merits of its one-year tariff application from April 2018 to March 2019. 

Maritz said during the process, Eskom has shared an honest representation of its business as well as what it would require to remain on a firm operational footing. 

“The fulfilment of these requirements will enable us to deliver on our primary mandate of providing electricity in an efficient and sustainable manner while we continue to play an important role in sustaining the economy of South Africa,” said Maritz.

In February, Nersa allowed Eskom to raise tariffs by 2.2% in the 2017/18 financial year. -

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