- Eskom applied for a price determination under MYPD5
- NERSA rejected the application
- Asks Eskom to file a one-year interim application
South African state-owned utility Eskom has taken the National Energy Regulator of South Africa (NERSA) to Court over the latter’s rejection of its tariff application for 2022, 2023, and 2024 financial years. In the suit filed at the South Gauteng High Court, Eskom has asked the Court to review NERSA’s decision.
The utility argues that a new tariff application is ”…simply incapable of lawful completion in time for the 15 March 2022 deadline”. The consequences, Eskom says, are too dire for its operations in the 2022/2023 financial year.
”Eskom will have zero revenue for the FY 2022/23. The required revenue to allow Eskom to continue operating will be more than the total allowable revenue for the 2021/22 financial year of over R260 billion,” the Court affidavit stated.
Eskom has also asked the Court to stop the move by NERSA to abolish the ‘allowable revenue’ component in the future tariff determinations; a move which it says disregards the previous ruling of the Court mandating NERSA to include allowable revenues for the utility’s 2022, 2023, and 2024 financial years.