SA Court Orders Nersa to Process Eskom’s Revenue Application With Prevailing Multi-Year Price Determination Methodology

  • The Gauteng High Court has ordered South Africa’s energy regulator, NERSA,  to process Eskom’s revenue application for the 2023 financial year, in accordance with the prevailing Multi-Year Price Determination Methodology.
  • NERSA, at its Energy Regulator meeting, on 30 September 2021, rejected the Eskom MYPD 5 revenue application.
  • NERSA wanted to make an interim price determination for the FY 2023 based on a new price methodology which it adopted earlier this week. Read more  

The North Gauteng High Court has ordered the National Energy Regulator of South Africa (NERSA) to process Eskom’s application and to make a revenue decision for the Financial Year 2023, which begins on 01 April 2022. This follows an urgent application by Eskom to overturn overturns NERSA’s decision to reject the Eskom revenue application. This revenue decision will be based on the application made by Eskom to NERSA on 2 June 2021. In a judgement today, the high court has confirmed that this methodology remains valid, until replaced by an alternative process.

“The decision by the High Court comes as a relief as it will contribute to the stability of the electricity industry and thereby the economy of the country,” said Hasha Tlhotlhalemaje, Eskom’s General Manager for Regulation.

Eskom made the revenue application in accordance with the prevailing methodology as published and approved by NERSA in 2016, the Multi-Year Price Determination (MYPD) methodology.

In implementing the court judgement, the High Court ordered NERSA to follow the following timetable:

  • On 08 December 21 – NERSA to publish Eskom’s MYPD5 revenue application as submitted to NERSA on 02 June 21
  • On 14 January 22 – Last day for written stakeholder comments on Eskom’s MYPD5 revenue application to NERSA
  • On 17 – 21 January 2022 – NERSA to hold public hearings on Eskom’s MYPD5 revenue application
  • On 25 February 2022 – NERSA to make revenue decision.

This timetable will allow for NERSA to then approve the detailed tariffs, in accordance with the NERSA Eskom Retail Tariff and Structural Adjustment (ERTSA) methodology and the tabling in Parliament by 15 March 2022. Revised tariffs and prices will be implemented from 1 April 2022 for non-municipal customers and on 01 July for municipal customers.

Author: Bryan Groenendaal

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