NERSA gives the green light to Eskom to increase tariffs

first_img Generation “However, at the time of this decision and although some of the adjustments were effected in the decision, the extent of the governance failures or amounts associated therewith had not been fully quantified,” said NERSA in a statement. NERSA received Eskom’s RCA application for the 2018/19 financial year, totalling R27,323 million in August 2019. Public commentary on social media The RCA balance will be recoverable from the standard tariff customers, local Special Pricing Arrangement (SPA) customers and international customers. The Reasons for Decision (RfD) will follow once the applicable requirements, including, but not limited to, the confidential treatment of some information, have been finalised, NERSA said in a statement. NERSA gives reasons for the approval The energy regulator also conducted public hearings in eight of South Africa’s nine provinces from 3 to 24 February 2020. The public hearings afforded interested and affected stakeholders the opportunity to present their views, facts and evidence. RELATED ARTICLESMORE FROM AUTHOR The RCA application is a mechanism allowing Eskom to adjust for any over- or under-recovery of revenue for a particular year due to events which differ from initial assumptions made when the energy regulator granted tariffs. Read more about:NERSAEskomTariffs This NERSA decision, plus successful Eskom court appeals, plus revenue claw backs from previous years, plus escalating coal & finance costs, mean utility electricity price increases way above inflation in the years ahead. Alternative supply options in SA increasingly competitive https://t.co/Nas3VwGaDx— Anton Eberhard (@AntonEberhard) May 16, 2020 NERSA noted it that made the decision after conducting the due regulatory process, which included publishing Eskom’s application and inviting written comments from stakeholders from 3 December 2019 to 20 January 2020. Sign up for the ESI Africa newslettercenter_img Nersa decision to hike tariffs of Eskom instead of approaching the national Gvt for capital ingestion is the most disastrous, untimely decision we might have to opposed this legal to protect jobs and communities. Nersa is busy chasing Lizards while crocodiles are facing us .— Irvin Jim (@IrvinJimSA) May 17, 2020 The regulator reviewed the application for compliance with the fourth Multi-Year Price Determination (MYPD4) Methodology and Minimum Information Requirements for Tariff Application (MIRTA) requirements. The energy regulator also underlined that it records that certain governance failures occurred in Eskom. The National Energy Regulator of South Africa (NERSA) has approved Eskom’s request to recover R13.3 billion as part of the power utility’s regulatory clearing account (RCA) application for the 2018/19 year. Why didn’t they use these two months to do maintenance? Now that large manufacturing industries are opening up, back to blackouts— Diane (@crazydoctorlady) May 17, 2020 Finance and Policy The statement continued: “Upon the completion of any investigations by any organ of state or commission into these governance failures, and if the failure is quantified, the energy regulator may, in future Eskom revenue applications, effect adjustments to Eskom’s revenue, based on the relevant outcome of the investigation.” TAGSEskomNersaSouth Africatariffs Previous articleHydropower associations unite on a post-COVID-19 recovery pathwayNext articleEgypt: University of Zagazig install 90kWp solar PV project Babalwa BunganeBabalwa Bungane is the content producer for ESI Africa – Clarion Events Africa. Babalwa has been writing for the publication for over five years. She also contributes to sister publications; Smart Energy International and Power Engineering International. Babalwa is a social media enthusiast. AFD and Eskom commit to a competitive electricity sector Low carbon, solar future could increase jobs in the future – SAPVIA BRICS UNDP China, CCIEE launch report to facilitate low-carbon developmentlast_img

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