The National Energy Regulator of South Africa (NERSA) has welcomed the decision by the High Court in Pretoria to dismiss an urgent relief sought by Eskom.
Eskom sought urgent relief to allow them to increase tariffs by 16.60% for the 2020/21 financial year, and by 16.72% for the 2021/22 financial year.
The High Court dismissed Eskom’s application on Monday for urgent relief.
“This judgement means that the Energy Regulator’s decision, made on 7 March 2019, regarding Eskom’s fourth Multi-Year Price Determination (MYPD4) for the control period of 2019/20 to 2021/22, remains in force,” NERSA said.
The regulator said it’s cognisant of the fact that the hearing of Part B of the review of the Energy Regulator’s decision on Eskom’s MYPD4 revenue application is still to take place.
Eskom’s MYPD4 application was for revenues of R219bn, R252bn and R291bn for the 2019/20, 2020/21 and 2021/22 financial years, respectively.
“The Energy Regulator approved Eskom’s allowable revenue of R206,380bn for financial year 2019/20, R221,843bn for financial year 2020/21 and R233,078bn for financial year 2021/22. The approved allowable revenue resulted in average price increases of 9.41%, 8.10% and 5.22% for the financial years, respectively,” NERSA said.
In performing its duties, NERSA is guided by, among others, the Electricity Regulation Act, 2006 (Act No. 4 of 2006) and the regulatory framework.
“NERSA remains confident that its determination is consistent with the governing legislative and regulatory requirements,” the regulator said. – SAnews.gov.za