Energy Regulator to appeal Eskom tariff court ruling
The National Energy Regulator of South Africa (NERSA) says it will appeal the High Court ruling that would allow Eskom to claw back R69 billion from consumers.
NERSA says the judgement "substituted the Energy Regulator's decision on Eskom's fourth Multi-Year Price Determination (MYPD4) with its own".
Last month, the North Gauteng High Court in Pretoria set aside a decision by NERSA to deduct a R69-billion equity injection from the power utility's allowable revenue for the current three-year period.
The R69 billion over the next three years was allocated to Eskom in the 2019 Budget to assist in its debt.
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However, NERSA spokesperson Charles Hlebela says if the judgement is not challenged, it will influence the consideration of tariff applications within the electricity supply industry.
"NERSA is of the view that it has reasonable prospects of success in the appeal, as the judgement has traversed beyond the acceptable principles that allow the court to substitute the decision of NERSA", says Hlebela.
He says NERSA will be filing its documents to apply for leave to appeal within the court permitted time frame.
In its reaction to the ruling, Eskom expressed its satisfaction, describing it as a "very encouraging" judgement.
"It aids in instilling confidence in the regulatory regime within the country, by ensuring that the NERSA methodology is adhered to.
This judgement will assist Eskom in paving the way forward towards financial sustainability," said Cassim.
Eskom then said that it planned on an additional once-off increase in April next year, with two more following after thereafter.
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