South Africa

NERSA and Eskom in court over prices

South Africa’s national energy regulator (NERSA) has said it is considering a lawsuit from Eskom, which seeks to force the energy regulator to reconsider the demand for tariff increases for Eskom.

This is because NERSA rejected Eskom’s request to increase electricity tariffs over several years at the end of September.

On Monday, the power company said it filed an application with the High Court to review NERSA’s decision to reject the rate hike, citing the decision as its only option.

“Unfortunately, this is the only option available to avoid extremely serious and negative consequences for Eskom and, therefore, for the National Treasury. The urgent High Court review requires NERSA to urgently process Eskom’s income claim for at least one year, as required by law.

“The proposed timeline allows for a decision in time for implementation by April 1, 2022,” Eskom said.

At the end of September, NERSA announced that it had rejected Eskom’s price request and published a consultation paper on the principles to be used in determining prices.

“The new pricing approach will also take into consideration the rapid transformation of the electricity sector in South Africa, respond to the transformation of the electricity industry and associated energy security issues, rising costs. electricity prices as well as increased power generation from the autonomous and private sector, NERSA said at the time

Eskom now claims that Nersa’s approach to pricing is “impossible” to apply.

“NERSA… asks Eskom to create a new application based on a methodology yet to be developed. This is impossible both from a legal point of view and from a temporal point of view. It is hoped that NERSA will react in a way that allows the stability of the country’s economy and the electricity industry, ”the power company said. –

NERSA and Eskom in court over prices

SourceNERSA and Eskom in court over prices

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