South Africa: Eskom Challenges National Tariff Increase

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The National Energy Regulator of South Africa (Nersa) has confirmed reports that national power utility Eskom has launched a court challenge in response to its approval of a 5.23 percent electricity tariff increase. The new tariffs apply to the 2018/19 financial year. Eskom had requested a 19.9 percent tariff increase.

In a statement released on Tuesday, Nersa said: ”On 15 December 2017, the Energy Regulator approved an allowable revenue of R190.348 bn [$14.4 bn] for Eskom for the 2018/19 financial year. The approved allowable revenue resulted in an average percentage price increase of 5.23 percent, effective from 1 April 2018. Eskom has applied for a total allowable revenue of R219.514bn [$16.6 bn], which would translate to a 19.9 percent average price increase.”

According to Eyewitness News, Eskom spokesperson Khulu Phasiwe said, “we do believe that we had complied with all the issues the regulator had required from us and we were using their own formula to come to the tariff increase that we are requesting.” In challenging the ruling, Eskom is acting within its rights in terms of the National Energy Regulator Act, the Electricity Regulation Act and the Promotion of Administrative Justice Act.