Eskom reviews NERSA decision in High Court for stability of industry

Sunday, 17 October 2021: Eskom has initiated proceedings in the High Court to review the National Energy Regulator of South Africa (NERSA) decision to reject Eskom’s MYPD 5 application. Regrettably, this is the only available option to avoid extremely serious and negative consequences for Eskom and by necessary consequence to National Treasury. The urgent High Court review requires NERSA to urgently process the Eskom revenue application for at least one year, as required by law. The proposed timeframe allows for a decision to be made in time for implementation by 1 April 2022.

 As required by law, Eskom submitted its revenue application to NERSA on 2 June 2021. The application is for implementation from 1 April 2022. The revenue application was made in accordance with the prevailing methodology, as approved by NERSA. This methodology remains valid, until replaced by an alternate.

 On 30 September 2021, NERSA rejected the Eskom MYPD 5 revenue application and requires Eskom to make a new application based on a methodology yet to be developed. This is impossible both from a legal process and timing point of view. 

 It is hoped that NERSA will respond in a manner that allows for the stability of the country’s economy and the electricity industry.


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