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