Durban - The National Energy Regulator of South Africa (NERSA) approved Eskom’s allowable revenue of R190.348bn for the 2018/19 financial year, almost half of what was asked for.
The announcement was made during a meeting held by NERSA today.
The approved allowable revenue of R190.348bn will result in an average percentage price increase of 5.23%.
Eskom applied for a total allowable revenue of R219.514bn, which translates to a 19.9% average percentage price increase.
Charles Hlebela of NERSA, said it was also decided that the allowed revenues must be recovered from Eskom’s standard and non-standard tariff customers (NPAs and international customers) based on the previously approved tariff principles and structures, using the Eskom Retail Tariff Structural Adjustment (ERTSA) methodology as approved by NERSA.
Hlebela said a total of 23,000 written comments were received from stakeholders, consisting of comments from private individuals, small users, intensive energy users, non-government organisations (NGOs) and environmental activists, as well as local government and other stakeholders.
The Energy Regulator also conducted public hearings in eight provinces of South Africa which afforded interested and affected stakeholders the opportunity to submit their views, facts and evidence. A total of 96 oral presentations were made.
"The Energy Regulator appreciates and encourages stakeholder participation in its decision-making processes and would like to thank all stakeholders for their valuable comments and input," Hlebela.
Meanwhile Eskom said in a statement that they are disappointed by the decision.
"Eskom made its application in accordance with the Multi-Year Price Determination (MYPD) methodology which allows Eskom to submit any changes permitted by the methodology. This corresponded to a revised average standard price increase of 18.9%," read the statement.
"Eskom will await the Regulator’s reasons for decision document for the 2018/19 allowed revenue in terms of the MYPD methodology. This will provide insight into how this allowed revenue decision was made. The reasons for decision document will enable Eskom to make an assessment on the impact to the business and then make a decision on the way forward."
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