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Public Hearings on Eskom regulatory clearing account commence
Monday, 16 April 2018: Eskom is scheduled to make presentations as the National Energy Regulator of South Africa (NERSA) conducts public hearings into Eskom’s application in terms of the regulatory clearing account (RCA) balance for the second, third and fourth year (2014/15; 2015/16 and 2016/17 period) of the third multi-year price determination (MYPD3), totalling R66.6 billion.
The hearings will take place across the country in the next three weeks, from today, 16 April until 11 May 2018. The first session is taking place in Cape Town.
The RCA process is entrenched in the NERSA MYPD methodology and is a globally-accepted regulatory principle that reconciles variances between the projected and actual revenue and costs that Eskom incurred for certain elements. The RCA mechanism allows Eskom to adjust for the over or under recovery to ensure that both Eskom and the consumers are treated fairly. The under or over recovery is then catered for through the electricity tariffs in the following year or subsequent years.
The Acting Chief Financial Officer, Calib Cassim says: “Eskom endeavours engaging in an open and transparent manner with all stakeholders to highlight that the RCA under review aims to recover efficient and prudent costs incurred from the previous financial years (2015, 2016 and 2017) and to account for sales volume variances.”