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Eskom disappointed by Nersa allowance

Eskom disappointed by Nersa allowance

Photo by Duane Daws

18th December 2017

By: Megan van Wyngaardt

Creamer Media Contributing Editor Online

     

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State-owned power provider Eskom on Monday said it was “disappointed” with the
National Energy Regulator of South Africa (Nersa) only allowing a 5.23% tarriff increase.

The parastatal said in a statement that this only allowed revenue of
R190.348-billion for the 2018/19 financial year.

Nersa also refused to allow the R511-million allowable revenue Eskom sought to derive from its demand management programme. Nor did it approve R193-million for research and development‚ only allowing Eskom to recover R112-million.

“We made our application in accordance with the multi-year price determination (MYPD)
methodologym which allows us to submit any changes permitted by the methodology.
This corresponded to a revised average standard price increase of 18.9%, or R219.514-billionn,” Eskom said in a statement.

It added that it would now await the regulator’s reasons for decision document for the 2018/19 allowed revenue in terms of the MYPD methodology. “This will provide insight into how this allowed revenue decision was made. The reasons for decision document will enable Eskom to make an assessment on the impact to the business and then make a decision on the way forward,” it noted.

Edited by Creamer Media Reporter

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