Eskom asks Nersa for adjustment of R22 billion
Eskom said on Thursday it has asked the National Energy Regulator of SA (Nersa) to approve a regulatory clearing account balance of R22.8 billion for the 2013/14 financial year.
“Eskom has applied to the National Energy Regulator of South Africa (NERSA) for the evaluation and approval of the regulatory clearing account (RCA) balance for the first year (2013/14 period) of the third multi-year price determination (MYPD3) amounting to R22.8bn.”
Eskom spokesman Khulu Phasiwe said the difference consisted mainly of money spent on diesel and buying electricity from independent power producers, over and above the expenditure forecast for the period in question.
Nersa would now take this into consideration and decide whether to approve a further tariff increase retrospectively to cover the gap between Eskom’s forecast and actual costs and income.
“NERSA will review Eskom’s submission and undertake a prudency review of the costs as required by the methodology. This will inform the decision on the quantum of the RCA. Once the quantum is determined, NERSA will decide on the liquidation of the balance which will inform the adjustment of electricity tariffs.”
Phasiwe noted that in June the regulator had rejected an application for an additional roughly R15 billion that related to fuel and independently produced power.
He said the utility would soon finalise its application for tariff increases for the next three-year price cycle.
The regulatory clearing account is a mechanism employed to conciliate projected and actual expenditure and revenue as funding allocations to Eskom are made on the basis of forecasts.