Eskom ruling will have negative impact on economy - Nersa
National Energy Regulator of South Africa (Nersa) believes the court ruling in favour of Eskom will have a negative effect on the energy sector and the economy.
This follows the power utility’s legal victory over the National Energy Regulator of South Africa (Nersa).
In its ruling, the High Court ruled that Nersa was wrong to include a R69 billion equity injection from government in its calculation of Eskom’s allowable revenue for 2019 to 2022.
This means the cash-strapped power utility will now the able to recover the money from consumers over the next three years.
This could lead to consumers could paying 15% more for power next year.
Nersa spokesperson Charles Hlebela says energy regulator’s original decision took into consideration the sustainability of Eskom and consumer interests.
"When the energy regulator made this decision, which is very important, made adjustments that would enable Eskom to be able to pay its debt.
"There four key consideration the energy regulator made when making this decision, it looked at the impact of the future price level, the sustainability of Eskom, the affordability of consumers in term of the price and lastly the impact it will have on the economy.”
He says Nersa might consider appealing the high court ruling.
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Eskom wins court ruling to increase electricity costs
The High Court reviewed and set aside a decision by the National Energy Regulator of South Africa (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.