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BIG DECISION

1st December 2017

By: Darlene Creamer

     

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The National Energy Regulator of South Africa (Nersa) is hoping to make its determination on Eskom’s revenue application for 2018/19 on December 7. It’s a big decision not only in light of Eskom’s liquidity problems, but also given the potential negative economic employment impacts of a further double-digit hike. If it were based purely on public sentiment and the overwhelming rejection, in 23 000 submissions, of Eskom’s application, it would be an easy call. However, Nersa has to take the decision on the basis of its legislated mandate and in terms of a tightly defined methodology.

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