The power utility is challenging tariff increases approved by the National Energy Regulator of South Africa (Nersa) for 2019 to 2022. If Eskom gets its way, consumers will pay 50% more for electricity.
Eskom contends that approving increases by 9.41% for 2019-2020, 8.10% for 2020-2021 and 5.22% for 2021-2022 instead of the requested 16% was insufficient.
At the core of the recent court challenge is a R23billion cash injection it received from the government that Nersa deducted when approving tariff hikes for three financial years.
In its court application, Eskom contends that the alleged inadequate increase provided by Nersa presents a “material risk of potential catastrophic consequences”, not only for the power utility but for the country.
Energy expert Ted Blom said: “The contestation around the R23bn relates to the fact that at the time, Eskom and government said the money was to subsidise operating costs and Nersa dealt with it as an income state
Continue reading…