Eskom: High Court ruling will allow recovery of costs
Power utility Eskom has won a court bid to set aside a 2018/2019 decision by the National Energy Regulator of South Africa (Nersa) to not grant them a 18.9% tariff increase.
Eskom approached the High Court in Pretoria after the energy regulator decided to only grant the power utility a 5.2% tariff increase.
The court described Nersa's decision as "procedurally unfair, irrational and unlawful".
Eskom’s General Manager of Regulations Hasha Tlhotlhalemaje says the court's decision will allow the power utility to "recover its efficient costs which Nersa did not allow it to recover in the first place".
"What Nersa was doing was allowing a further subsidy to the users of electricity and as you know, we have to keep on getting equity injections from government because of the nature of the Nersa's decision."
Eskom can now file a new application within 60 days to recover the costs in the next year.