The National Energy Regulator of South Africa (Nersa) made its first move to comply with a Gauteng High Court order to process Eskom‘s fifth multi-year price determination.
The regulator announced the release of the consultation paper and published Eskom’s fifth Multi-Year Price Determination (MYPD) 5 revenue application for the 2023 – 2025 financial years.
Eskom however says Nersa has misrepresented the power utility’s revenue application to include matters that are still under consideration by both the courts and by Nersa itself.
Earlier this year, Nersa announced the third Multi-Year Price Determination and Eskom’s supplementary tariff application for the financial year 2018/19. This announcement was in line with the High Court’s decision to grant the power utility an additional R6 billion it got from National Treasury.
NERSA’s Nhlanhla Gumede weighs in on the looming 15.63% price increase:
Recently, the power utility took Nersa back to the High Court for its third multi-year price determination. The power utility says the 20.5% electricity price increase application is part of its third multi-year price determination for the financial year 2023.
“The only solution for Eskom the country and for all electricity users was for Eskom to review this decision in the high court and basically the high court supported Eskom’s application and therefore on an urgent basis there will be made for the one year of the three-year application that Eskom has made,” says Hasha Tlhotlhalemaje, General Manager for regulations at Eskom.
If the High Court grants Eskom the approval of its application. The over 20% electricity price increase will be in effect on the first of April next year for non-municipal customers.
“It will be implementable on the first of April for non-municipal customers and for municipal customers it will be implemented on the first of July 2022.”
In a statement, Nersa confirmed that it is adhering to the order that Eskom’s revenue application submitted on 2 June.
NERSA announcement on Eskom’s 3-year application on tariffs between 2014 and 2017:
