Outa commends Nersa’s decision on Eskom secrecy application

11th August 2017 By: Anine Kilian - Contributing Editor Online

The Organisation Undoing Tax Abuse (Outa) has welcomed the National Energy Regulator of South Africa’s (Nersa’s) decision to overrule State-owned Eskom’s application to omit some of its operating costs during its next multiyear price determination (MYPD) tariff application.

Eskom had applied to Nersa for permission to keep certain cost information secret, largely because it said it was unable to provide such detailed information.

Outa last month objected to Eskom’s application and provided a detailed written and verbal submission to Nersa.

“We’re pleased that Nersa has instructed Eskom to provide the information and, as such, has acted in favour of the public,” Outa energy portfolio director Ted Blom said.

The detailed information related to extensive operating costs and must now be provided to Nersa by August 27, as part of Eskom’s tariff application for 2018/19.

Nersa allowed Eskom exemptions from providing two categories of information – a temporary exemption on the valuation of the regulatory asset base, but this must be provided for in the next tariff application; and an exemption on the deferred debits and credits, as this related to an aspect that is not part of the tariff application.

The information is legally required in terms of the MYPD and minimum information requirements for tariff applications, which, since 2016 include increased disclosure requirements.