Regulator says Eskom can recover $2.25 bln over four years

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South African energy regulator NERSA on Tuesday gave power utility Eskom the go-head to recover R32.69 billion ($2.25 billion) of costs incurred over the past three years through higher tariffs over a four-year period from 2019 to 2023.

Eskom had been hoping to recover the costs in three years.

Cash-strapped Eskom, which is battling to emerge from governance and financial difficulties, had applied for 66.6 billion rand to compensate for costs that were not factored in previous tariff increases granted by the regulator.

NERSA said in June that Eskom could recover the R32.69 billion but did not provide the time frame at that time.

The energy regulator will invite written submissions and hold public hearings in January, and is expected to make a decision in February or March.

Nersa’s spokesperson Charles Hlabela says “In terms of the tariff increases – they are based on the MYDP 4. So we’re still waiting for the MYDP 4 depending on what the Energy Regulator is going to approve that will form a base for in terms of the tariff increase in terms of the MYDP going forward.”