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Nersa rejects Eskom’s plan, wants sustainable prices

Says new methodology is needed.
Image: Waldo Swiegers/Bloomberg

South Africa’s energy regulator Nersa has rejected a multi-year revenue application by state-owned power utility Eskom, the regulator said in a statement on Thursday.

The National Energy Regulator of South Africa (Nersa) said it will embark on a consultation process to develop a new methodology that will ensure sustainable electricity prices.

Read: Nersa proposes complete overhaul of Eskom price determination

Eskom is mired in financial crisis and struggles to power Africa’s most industrialised economy because of regular faults at ageing coal-fired plants that provide most of the country’s electricity.

The revenue applications, if approved by the regulator, provide an important mechanism for Eskom to claw back money from customers via tariffs.

In January, Nersa allowed Eskom to recoup an additional R6 billion after a court set aside several of its earlier decisions.

“The energy regulator will request Eskom to submit a one-year interim application for the 2022/23 financial year, preferably based on the principles of a new approach that is under consideration,” it said in a statement.

It had rejected Eskom’s fifth multi-year price determination (MYPD5) revenue application for the financial years 2022/23, 2023/24 and 2024/25 on the basis that it was based on an expired methodology.

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This is classic.
Nersa does not like the answer by Eksdom as calculated by the Nersa Methodology.
Nersa never revised the methodology and now claims that it had expired ???
WOW– When did it “expire”?, where is the “new” methodology to replace it?? Oh you only want a new method because the answer does not suit you!!

Idiots at play while the economy suffers !!!

End of comments.

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