The National Energy Regulator of South Africa (Nersa) announced that on July 29, the Energy Regulator approved the publication of a consultation paper and timelines to process State-owned utility Eskom’s Fifth Multi-Year Price Determination (MYPD5) revenue application for the 2023/24 financial year.

This is in line with the High Court judgment delivered on July 5.

The consultation paper requests that stakeholders comment on Eskom’s revenue application for both the 2023/24 and 2024/25 financial years.

Eskom’s revenue application amounts to R335-billion for the 2023/24 financial year and R365-billion for the 2024/25 financial year.

Eskom’s revenue application for the 2023/24 financial year will be processed in terms of the Fourth Multi-Year Price Determination (MYPD4) methodology, as per the court order.

The main drivers of Eskom’s revenue application are the regulatory asset base (RAB), primary energy, independent power producers' (IPPs') operating costs and depreciation.

Moreover, an amount of R15-billion will be added to the determined allowable revenue in compliance with a June 6 court order.

Nersa says it will consider Eskom’s revenue application for the 2023/24 financial year in accordance with the timelines set out below.

The closing date for stakeholder comments on the supplementary applications started on July 29 and will close on September 8.

Public hearings will be held over Microsoft Teams between September 19 and September 23.

A special electricity subcommittee meeting to recommend the draft decision and reasons for decision will be held from October 19 to 21.

The energy regulator will deliberate on its final decision between October 25 and November 7. 

Nersa requests stakeholders to comment, in writing, on the consultation paper on Eskom’s MYPD5 revenue application.

The closing date for the submission of comments is September 8 at 16:00.

The consultation paper and Eskom’s MYPD5 revenue application are available on the Nersa website.