24 February 2022: Eskom appreciates that the National Energy Regulator of South Africa (NERSA) has timeously made a revenue determination to allow for implementation from 1 April 2022. This determination will allow Eskom to apply the adjusted price to customers.
Eskom had made its Multi-Year Price Determination (MYPD) 5 revenue application to NERSA on 2 June 2021 for the FY 2023 to 2025 in accordance with the prevailing NERSA methodology, as published in 2016. On 30 September 2021, the Energy Regulator rejected the application. Eskom was required to make a new application based on a methodology yet to be published. Eskom successfully reviewed this Energy Regulator decision in the High Court with regards to FY 2023. The Court provided NERSA with a timeframe to undertake its consultation, analysis and determination process. NERSA has ensured that these timelines have been met.
Calib Cassim, Eskom’s Chief Financial Officer says: “The financial implications of this decision on Eskom’s long-term sustainability will need to be further understood. It is understood that NERSA considered the impact on consumers and the financial sustainability of Eskom as it made its decision”.
The Eskom Board will deliberate further before deciding on how to continue to sustainably provide electricity to the extent possible in the context of this revenue decision. In addition, Eskom keenly awaits the reasons for the decision that will provide further details on how the revenue determination was arrived at.