- NERSA calls for an overhaul of Eskom’s tariff methodology
- Proposes a cost-too-serve approach for electricity tariffs
- To hold a public hearing for stakeholders
The National Energy Regulator of South Africa (NERSA) has called for an overhaul of Eskom’s tariff methodology. In a discussion paper published by NERSA, the regulator calls for a transition from the current revenue-based methodology to a cost-to-serve methodology for electricity tariffs. The cost-to-serve methodology will benefit large power users who currently subsidise residential customers.
NERSA will hold a public hearing on its proposal for a change in tariff methodology, which it hopes to finalise in November. In furtherance to the public hearing, NERSA has requested comments from stakeholders so the proposed changes. Stakeholders have until October 29 to submit written comments.
Eskom had, in June, submitted a tariff application for the next three years; NERSA is expected to decide on the application by next week.