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Skip Navigation LinksHome>Media Room>Eskom notes NERSA publication of the reasons for decision for the regulatory clearing account (RCA) balance decision for FY 2019
Eskom notes NERSA publication of the reasons for decision for the regulatory clearing account (RCA) balance decision for FY 2019
Monday, 12 October 2020: The National Energy Regulation of South Africa (NERSA) has published the reasons for its determination on Eskom’s regulatory clearing account (RCA) balance of R13bn for the financial year (FY) 2019 made on 14 May 2020.
 
The history of this FY 2019 tariff application is that Eskom had applied for a revenue of R219bn (corresponding to 19% increase). NERSA granted Eskom a revenue of R190bn (corresponding to a 5.23% average increase). In accordance with the NERSA Multi-Year Price Determination (MYPD) methodology, Eskom is required to make a RCA application after the Eskom audited financial results are published. On 8 August 2019, Eskom then made a RCA application of R27bn application for prudent and efficient costs that had materialised during the FY 2019. 
 
Eskom is reviewing the detailed reasons for decision. The Eskom Board will then make a decision on the way forward with regards to this NERSA decision.
 
Eskom understands that NERSA has initiated a consultation process with the public with regards to the timing of the recovery of these efficient and prudent costs which will be concluded by end November 2020 as indicated by NERSA. In accordance with NERSA processes, it is envisaged that these costs will only be recovered at the earliest in FY 2022, in the period starting 1 April 2021.
 
ENDS