Eskom says it will challenge National Energy Regulator of South Africa’s (Nersa) latest tariff determination, citing failure by the regulator to adhere to guidelines.  Nersa has granted Eskom a tariff increase of between 5 and 9% for the next three years.

Eskom says the hikes will result in a budget shortfall for the cash-strapped utility of approximately R102 billion.

It plans to urgently take Nersa’s tariff determination on legal review. “The methodology of needs required Eskom to get a return on assets that will be able to pay its debt, however when Nersa reversed this decision it would make it difficult for Eskom to be sustainable. What Eskom is asking for is a tariff increase higher than Nersa has approved,” says Eskom General Manager for Regulation Hasha Tlhotlhalemaje.