Eskom gets the green light to hike tariffs

Eskom gets the green light to hike tariffs

The National Energy Regulator of South Africa (NERSA) has approved an application from Eskom to recover the balance from its Regulatory Clearing Account (RCA) for the 2018 / 2019 financial year from Eskom customers.

Eskom load shedding - AFP

NERSA says Eskom can now recover R13.271 billion from its standard tariff customers, local Special Pricing Arrangement (SPA) customers and international customers.


NERSA’S Charles Hlebela says the RCA is meant to ensure that there’s no under or over recovery or expenditure by Eskom in any given financial year.


Eskom applied for a R27.323 billion recovery in August last year.


“That was the application for which we conducted public hearings. Based on those comment that we received from stake holders and members of the public and the thorough analysis that was conducted, the Energy Regulator approved the balance in Eskom’s favour,” says Hlebela.

The Reasons for Decision (RfD) will follow once the applicable requirements, including the confidential treatment of some information, have been finalised.

Hlebela adds that an implementation plan for the 2018/19 RCA balance will be developed for approval by the Energy Regulator within a reasonable period of time.


NERSA has recorded certain governance failures within Eskom.

However,  it says at the time of this decision and although some of the adjustments were effected in the decision, the extent of the governance failures or amounts associated therewith had not been fully quantified.

Hlebela concludes by saying NERSA balanced both Eskom’s interests and those of the public, in line with section 2(b) of the Electricity Regulation Act, 2006 (Act No. 4 of 2006).

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