South African energy regulator Nersa says it will allow power utility Eskom to recover R13.3 billion from customers for electricity supplied in the 2018/19 financial year, lower than what the state-owned power utility had applied for.
Nersa said on Friday in a statement it will give its reasons for the decision once certain requirements have been finalised and will draw up an implementation plan for recovering the tariffs within a reasonable period of time.
Cash-strapped Eskom applied in August 2019 to Nersa to claw back R27.3-billion from electricity customers through power tariffs, saying it needed to cover costs incurred for the financial year 2018/19.
Energy regulator NERSA says it will allow Eskom to recoup over R13 Billion from customers. Eskom had applied to NERSA to recoup R27.3 billion rand through power tariffs, saying it needed to cover costs incurred for the financial year 2018/19. #sabcnews
— SAfm news (@SAfmnews) May 16, 2020
Eskom was not immediately available for comment on Friday.
Eskom supplies more than 90% of South Africa’s electricity but is struggling with high debts and faulty power stations which prompted it to impose several rounds of severe power cuts last year, hurting the country’s economy.
Eskom is dependent on government bailouts to stay solvent and the perilous state of its finances is one of the biggest risks to South Africa maintaining its investment-grade credit rating.
Nersa’s decision on Eskom’s Regulatory Clearing Account (RCA) application for the 2018/19 financial year:
Media Statement – NERSA’s decision on Eskom’s Regulatory Clearing Account (RCA) application for the 2018/19 financial year. pic.twitter.com/uPqqAg1wpB
— NERSA_ZA (@NERSA_ZA) May 15, 2020
— @Economic_Cluster (@empowermzansi) May 16, 2020
The video below is on Nersa’s battle in court with power utility Eskom over the price of electricity: