Eskom to await decision by Nersa on way forward

Electricity provider Eskom says it will await a decision by the National Energy Regulator of South Africa (Nersa) on the way forward after a court on Tuesday set aside a decision by the regulator grating the parastal an effective 9.4% tariff increase for 2016.

The South Gauteng High Court ruled earlier on Tuesday that Eskom had not followed the correct methodology when requesting an additional tariff increase for 2016 using the Revenue Clearing Account.

Eskom had failed to submit quarterly reports to Nersa to lay the basis for the application and also submitted late‚ outside of the permitted time frame‚ it said.

Responding to the court’s finding‚ Eskom said in a brief statement on Tuesday evening: “Eskom notes the judgment by the Gauteng High Court today on the (Regulatory Clearing Account (RCA) and will await a decision on the way forward by the National Energy Regulator of South Africa (Nersa).”

It is unclear what the court decision means for consumers and whether it would have the effect of disallowing the tariff increase implemented on March 1.