The National Energy Regulator (Nersa) has published the reasons for its decisions on Eskom’s Regulatory Clearings Account applications for year 2, 3 and 4 of the third Multi-Year Price Determination.
“The National Energy Regulator of South Africa announced today that it has published the Reasons for Decision (RfD) documents on Eskom’s Regulatory Clearing Account (RCA) applications for year 2 (2014/15), year 3 (2015/16) and year 4 (2016/17) of the third Multi-Year Price Determination (MYPD3),” said the regulator on Monday.
The RCA is an account in which all potential adjustments to Eskom’s allowed revenue, which has been approved by Nersa, is accumulated and managed.
In June, the regulator approved a total RCA balance of R32.69 billion for the three years as follows:
- a RCA balance of R12.577 billion for the 2014/15 financial year;
- a RCA balance of R12.058 billion for the 2015/16 financial year; and
- a RCA balance of R8.055 billion for the 2016/17 financial year.
The Reasons for Decision documents are available on the Nersa website at www.nersa.org.za.
However on 2 October 2018, Nersa announced the liquidation of the balances.
In the statement, it was indicated that Eskom will recover R8 173m from standard tariff customers from the 2019/20 financial year until the 2022/23 financial year.
“This statement is corrected as follows: Eskom will recover R7 776m from standard tariff customers from the 2019/20 financial year until the 2022/23 financial year.”
In a statement on Friday, Eskom noted the regulator’s reasons with regards to the RCA balance on its application for the 2014/15, 2015/16 and 2016/17 years.
“Eskom will undertake further analysis of the reasons for decision against the Multi-Year Price Determination (MYPD) methodology (as published during 2012), Nersa RCA decision precedents and the Nersa prudency guidelines before it can comment in detail,” said the utility. - SAnews.gov.za