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Nersa allows Eskom to raise tariffs by 2.2% in 2017/18

10th March 2017

By: Anine Kilian

Contributing Editor Online

     

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The National Energy Regulator of South Africa (Nersa) has allowed State-owned power utility Eskom to raise its tariffs by 2.2% for the 2017/18 year.

Nersa chairperson Jacob Modise said late last month that the regulator had confirmed Eskom’s allowable revenues of R205-billion for the period.

“The approved revenues will be able to cover all Eskom’s allowed costs, plus a return to the value of R33.67-billion as per the third multiyear price determination (MYPD3) decision,” he noted.

He highlighted that the allowable revenue also included an amount of R23-billion for purchases from independent power producers as a cost pass-through, in line with the MYPD3 methodology.

The decision was influenced by the Gauteng High Court’s 2016 ruling that Nersa’s processes in considering the Regulatory Clearing Account were illegal. The regulator is appealing the ruling.

Nersa stressed, however, that nothing prevented Eskom from considering any possible cash-flow risks and the implications thereof on its financial sustainability and submitting an application for relief.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

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