Photo by: Creamer Media
The National Energy Regulator of South African (Nersa) has unveiled its adjudication timetable for Eskom’s fourth multiyear price determination (MYPD4) revenue application, which will include public hearings in all nine provinces between January 14 and February 1, 2019.
The regulator has also confirmed that it will deal with Eskom’s regulatory clearing account (RCA) submission for the 2017/18 financial year – the final year of the MYPD3 tariff period – as part of the same adjudication process.
The State-owned utility has applied for allowable revenue of R219-billion for 2019/20, R252-billion for 2020/21 and R291-billion for 2021/22.
If granted, it would equate to tariff hikes of 15% a year over the three years, before any RCA allowances.
Nersa has already confirmed that Eskom is allowed to recover R32.7-billion, over a four-year period, approved as part of three separate RCA applications adjudicated earlier this year. The decision will translate to Eskom’s 2019/20 tariff rising by 4.41% in addition to any MYPD4-related hikes approved.
Nersa reported that an analysis of the MYPD4 and RCA applications had shown them to be in compliance with both the minimum information requirements for tariff applications, as well as the MYPD methodology.
It had, therefore, decided to follow “due regulatory processes” in assessing the applications, starting with the publication of the two applications on its website on October 19 and a call for written comments from stakeholders.
The closing date for written submissions is November 30, with public hearings scheduled to begin in Cape Town on January 14 and conclude in Gauteng on January 31 and February 1.
Nersa will make a determination on both applications on March 1, 2019.