Nersa welcomes Constitutional Court ruling

Thursday, August 24, 2017

The National Energy Regulator of South Africa (Nersa) has welcomed the Constitutional Court’s decision to dismiss the leave to appeal application by Borbet SA (Pty) Ltd and others regarding the regulator’s decision to approve Eskom’s third Multi-Year Price Determination (MYPD 3) Regulatory Clearing Account (RCA) for the 2013/14 financial year.

“The National Energy Regulator (NERSA) today announced that it welcomes the decision by the Constitutional Court to dismiss the leave to appeal application by Borbet SA (Pty) Ltd and others against the Supreme Court of Appeal judgement delivered on 16 August 2017,” said the regulator on Wednesday.

The Constitutional Court on Tuesday dismissed the Borbet’s application, saying that it bears no prospects of success.

It was reported that the company that manufactures and markets alloy wheels last month approached the court for leave to appeal against the decision by the Supreme Court of Appeal (SCA) to uphold electricity tariff increases approved by the regulator.

“Nersa will consider the implications of this decision and determine the next step,” said the regulator.

On Tuesday, Eskom said the RCA tariff adjustment that was approved by NERSA for the first year (2013/14) of the MYPD3, which was effected through adjusting the tariff for the March 2016/17 financial year remains applicable.

“The implication of the Constitutional Court’s judgment is that the SCA judgment stands as the final decision in relation to the original application by Borbet to review the Nersa decision of 1 March 2016. The regulatory clearing account (RCA) tariff adjustment that was approved by Nersa for the first year (2013/14) of the MYPD3, which was effected through adjusting the tariff for the March 2016/17 financial year remains applicable,” said the power utility.

The Constitutional Court’s decision means that Eskom is not barred from making future RCA applications for electricity price adjustments to Nersa in relation to the MYPD3. 

“The ruling also clears the path for Nersa to process Eskom’s RCA submissions for the 2014/15, 2015/16 and 2016/17 financial years,” said the power utility earlier this week.

In February, the energy regulator allowed Eskom to raise tariffs by 2.2% in the 2017/18 financial year. – SAnews.gov.za

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