Tuesday,
28 July 2020: The Judgement on the Eskom Board review of the
National Energy Regulator of South Africa’s (NERSA’s) decision on the
Multi-Year Price Determination (MYPD) 4 was delivered today. The
Judgement requires Eskom to recover the R69bn, in a phased manner over a three
year period. Prior to the Court hearing, NERSA was in agreement that the
deduction of the equity injection was not correct in terms of its MYPD
methodology. The Judge was required only to make a decision on the recovery of
the equity.
Eskom
welcomes this decision which allows for Eskom to migrate towards a situation
where it could become more self-sufficient and be in a position to recover
efficient costs and reduce its dependence for further equity support from the
Government.
Calib Cassim, Eskom’s Chief Financial
Officer says, “The Judgement that has been delivered is very encouraging. It
aids in instilling confidence in the regulatory regime within the country, by
ensuring that the NERSA methodology is adhered to. This Judgement will
assist Eskom in paving the way forward towards financial sustainability.”
It is understood that certain vulnerable sectors of the economy – poor
residential customers and certain industrial sectors will require special
consideration. Various measures are already in place to protect the poor. In
addition, Eskom has been participating, under the leadership of the Department
of Mineral Resources and Energy (DMRE), in proposals where certain vulnerable
economic sectors would be considered for targeted support.
Eskom
will work with NERSA in implementing the outcome of the Court decision.
ENDS