Eskom says it is confident that the National Energy Regulator will approve its application for an additional R66 billion. The power utility is trying to put back the money to recover a shortfall in revenue lost between 2014-2017.
The public hearing on the tariff increases will start in the Western Cape and end in Gauteng in May.
A Constitutional Court ruling in August 2017 cleared the way for Nersa to process three Eskom applications. Eskom’s General Manager Hasha Tlhotlhalemaje briefed the media in Johannesburg.
“This deals with risk managing process in comparing what Nersa’s decision was and what actually happened and the variances that occurred to various factors including the change in the sales volume, the price of crude oil, the price of coal etc. So, this is not additional costs that Eskom is incurring, but rather variances that had occurred that Nersa had already decided on.”
Nersa is to decide how much money Eskom needs. The power utility says the amount will be spread over a period of three to five years.
Nersa will make an announcement on its decision in June.
Eskom estimates that the increases will not be more than 3% per annum. It has also cautioned consumers to note the VAT increases will impact on their electricity bill starting at the end of April.
“We do respect that this is a large amount of money because it’s for a three-year period and this was delayed due to particular court processes. But Eskom is cognisant of the methodology of the phasing out of this prudent cost. There was already a lower decision that was made and this is the recovery of the previous decision,” says Tlhotlhalemaje.