Eskom says it has applied to the National Energy Regulator of South Africa (Nersa) for “the evaluation and approval of the regulatory clearing account (RCA) balance for the first year (2013/14 period) of the third multi-year price determination (MYPD3) amounting to R22.8 billion.”
Economists.co.za’s Mike Schüssler told Moneyweb that the R22.8 billion Eskom’s applying for translates to an extra 14% increase, over and above the 3.5% increase granted earlier.
He added that if Eskom’s new application is granted we may see electricity tariffs rise by about 17% next year – around election time.
“The MYPD methodology requires Eskom, after financial year end, to submit its RCA application to Nersa based on audited financial statements. Nersa’s regulatory rules (MYPD methodology) allows Eskom to adjust for the over- or under-recovery of preceding years’ regulated costs and revenues through the electricity tariffs in subsequent years,” says Eskom.
“Nersa will review Eskom’s submission and undertake a prudency review of the costs as required by the methodology. This will inform the decision on the quantum of the RCA. Once the quantum is determined, Nersa will decide on the liquidation of the balance which will inform the adjustment of electricity tariffs.”
More to follow.