The High Court of Pretoria has ruled in favor of Eskom in its attempt to overturn the decision of South Africa’s national energy regulator (Nersa) to deny the utility’s 2022/23 revenue request ‘electricity.
In a report out on friday, Eskom confirmed that Judge Jody Kollapen had ordered Nersa to rule on Eskom’s electricity tariff request by February of next year.
Kollapen ruled that this should be judged in accordance with the Multi-Year Pricing Methodology (MYPD) released in 2016.
The court also ruled that the methodology remains valid, until it is replaced by an alternative process.
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“The High Court’s ruling is a relief as it will contribute to the stability of the power industry and therefore the country’s economy,” Eskom chief regulatory officer Hasha Tlhotlhalemaje said.
The judgment was granted to Eskom as part of part A of its judicial offer.
Eskom is also seeking an order reviewing and setting aside the decision of Nersa to reject its tariff request for 2023/24 as well as 2025 in part B of its request.
This request has yet to be heard, according to End24.
Eskom had approached Nersa on June 2 this year, however, the energy regulator rejected the power company’s request.
Nersa’s rejection was on the basis that the methodology used by Eskom to calculate its qualifying income was applicable for the MYPD4 period, which would end on March 30, 2022, and could not be used for a determination after that date.
Meanwhile, Kollapen in his ordinance also established a timetable for the determination of the tariff 2023/23, which states that:
- Nersa to release Eskom’s MYPD5 revenue app on December 8, 2021
- Representations on Eskom’s MYPD5 revenue app must be made by January 14, 2022
- Nersa to hold public hearings on Eskom’s MYPD5 revenue request between January 17-21
- The regulator is due to make a final decision on Eskom’s request by February 25.
The power company had requested that the decision be made by December 15 in order to give Nersa sufficient time to conclude the public hearings relating to the implementation of the revised prices and prices.
This will be implemented on April 1, 2022 for non-municipal customers and on July 1 for municipal customers.
Defeat for Nersa as court orders regulator to decide Eskom’s 2022/23 tariff
Source link Defeat for Nersa as court orders regulator to decide Eskom’s 2022/23 tariff