NERSA is fighting a bid by Eskom to raise electricity prices by a whopping 53%.
The National Energy Regulator of South Africa (Nersa) has filed court papers in response to Eskom which called for the high court to review and set aside Nersa’s decision to limit its revenue from electricity tariffs for the period 2019/20 to 2021/22.
Nersa’s Nomfundo Maseti says Eskom’s incompetence and maladministration have forced citizens to fork out more money.
“In doing so, it became apparent that the inclusion of the R23 billion equity injection would lead to a 53% tariff increase, which would have been unaffordable to the public and unsustainable to the economy,” she said.
The urgent application relates to the R69 billion bailout the government gave Eskom.
Nersa deducted this amount from Eskom’s approved revenue for the current tariff period, which ends in March 2022.
If Eskom wins this application, the price will rise from the 8.1% increase approved by Nersa for this year to 16% and the 5.22% increase for next year.
Maseti said Nersa found out about the bailout when it was announced in parliament.
This despite a legal obligation from Eskom to declare “all relevant information” to Nersa.
Meanwhile, Eskom has denied it has asked Nersa for R1.8 billion to pay bonuses.
Eskom said the fourth multi-year price determination application it made to NERSA did not include bonuses, which it said was the “equivalent to a 13th cheque which forms part of the Eskom basic conditions of service”.
“In keeping with a board decision reflecting the poor performance of the business, no performance bonuses have been paid to employees in the past two years.”
dailyvoice.co.za