Eskom applies for R66bn revenue claw-back

Eskom on Monday made representations to the National Energy Regulator of SA (Nersa) in its application to get back R66.6bn in revenue for the past three financial years.

Eskom applied to Nersa for a regulatory clearing account (RCA) to recover the money it had spent above the multi-year price determination estimates made by Nersa.

The RCA mechanism is a balancing mechanism between what was awarded by Nersa on the basis of a forecast and what actually materialised. The under or over-recovery is then catered for through electricity tariffs in subsequent years.

Nersa began its public hearings into Eskom’s application in terms of the RCA balance for 2014/2015‚ 2015/2016 and the 2016/2017 period of the third multi-year price determination‚ totalling R66.6 billion.

The hearings will take place across the country until May 11 2018. The power utility said lower electricity sales contributed R44bn of the three regulatory clearing accounts submitted.

Eskom also said the three RCAs were not a response to a price increase of 5.23% awarded to Eskom by Nersa for the 2018/2019 financial year.

Eskom’s acting chief financial officer Calib Cassim said the RCAs under review aimed to recover efficient and prudent costs incurred from previous financial years.

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