By: Terence Creamer
In a scathing judgment made on July 28, the court declared as illegal the National Energy Regulator of South Africa’s (Nersa’s) decision to deduct a R69-billion equity injection into Eskom from its allowable revenue for the period 2019/20 to 2021/22 and has instructed that the full amount be added back to the utility’s allowable revenue over the coming three years.
Given that the injection comprised three R23-billion-a-year tranches and the fact that Eskom was already into the second year of a three-year tariff determination, Judge Fayeeza Kathree-Setiloane said that the first R23-billion should be added during the 2021/22 financial year.ADVERTISEMENT
This would immediately increase the 2021/22 tariff from the 116.72c/kWh approved on March 7, 2019, as part of the fourth multiyear tariff determination (MYPD4), to 128.24c/kwh.
Under Nersa’s original determination, tariffs were meant to increase by only 5.22% on April 1, 2021.
Read the full article on the Creamer Media website: https://www.engineeringnews.co.za/article/power-tariff-set-to-rise-to-128ckwh-in-2021-after-eskom-wins-battle-with-nersa-over-r69bn-equity-injection-2020-07-28
Author: Derrick Markotter
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