Cape Town – The National Energy Regulator of South Africa (Nersa) said it would appeal the Gauteng High Court judgment to review and set aside its decision on Eskom’s fourth multi-year price determination.
Nersa said yesterday it was of the view that it had reasonable prospects of success on appeal, as the judgment had “traversed beyond the acceptable principles that allow the court to substitute the decision of Nersa”.
“Nersa has also concluded that if the judgment is not challenged, it will influence the consideration of tariff applications within the electricity supply industry,” the regulator said.
Eskom had sought the approval of a total allowable revenue between R219 billion and R291bn over the next three years, translating into a yearly tariff increase of approximately 15% for customers.
Nersa, however, approved a total allowable revenue of between R206bn and R233bn over the next three years, which translated into 9.41%, 8.1% and 5.22% tariff increases over the same period.
Eskom was dissatisfied with the decision and, turning to the high court, contended that Nersa had misappropriated R69bn in equity injections that government, as the sole shareholder of Eskom, made to it for the three financial years covered by the 2019/2022 decision.
Gauteng High Court Judge Fayeeza Kathree-Setiloane found in favour of Eskom and said Nersa had taken irregular decisions in three consecutive applications made by the parastatal.
Judge Kathree-Setiloane ordered that R23bn be added to the allowable revenue already determined by Nersa for the 2021/2022 financial year.
Nersa said it would be filing its leave to appeal papers in the coming days.
Cape Times