IN A victory for problem plagued Eskom, the power utility said on Friday that the North Gauteng High Court had ordered the National Energy Regulator of South Africa (Nersa) to process its application and to make a revenue decision for the financial year 2023, which begins on April, 1, 2022.
The revenue decision would be based on the application made by Eskom to Nersa on June 2.
This followed an urgent application by Eskom to overturn Nersa’s decision to reject the Eskom revenue application on the basis that a new pricing methodology was needed, a move the state-owned enterprise argued would create a regulatory vacuum for the electricity supply industry.
Eskom also argued adapting to the new application process might take longer, jeopardising its financial status through delays.
In a judgment on Friday the high court confirmed that this methodology remained valid, until replaced by an alternative process.
Eskom’s general manager for regulation, Hasha Tlhotlhalemaje, said: “The decision by the High Court comes as a relief as it will contribute to the stability of the electricity industry and thereby the economy of the country.”
Eskom said it had made the revenue application in accordance with the prevailing methodology as published and approved by Nersa in 2016, the Multi-Year Price Determination (MYPD) methodology.
In implementing the court judgment, the high court ordered Nersa to publish Eskom’s MYPD5 revenue application on December 8 as submitted to Nersa on June 2; January, 14, 2022, would be the last day for written stakeholder comments on Eskom’s MYPD5 revenue application to Nersa; from January 17 to 21, 2022, Nersa was to hold public hearings on Eskom’s MYPD5 revenue application; and finally, on February 25 , 2022, Nersa was to make revenue decision.
Eskom said this timetable would allow for Nersa to then approve the detailed tariffs in accordance with the Nersa Eskom Retail Tariff and Structural Adjustment methodology and the tabling in Parliament by March 15, 2022. Revised tariffs and prices would be implemented from April 1, 2022, for non-municipal customers and on July 1 for municipal customers.
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