Eskom drops tariff bombshell: If the court accepts Eskom’s arguments against Nersa, the additional R69 billion it currently wants from consumers could pale in insignificance compared with future demands, given the utility’s track record of poor management
Making a strong case against Nersa, power utility argues that regulator overstepped its legal mandate in focusing on tariff affordability rather than cost management.
Eskom’s application, which would have the effect of forcing consumers to cough up an additional R69 billion in electricity tariffs over the next three financial years, was heard in the Pretoria High Court by Judge Jody Kollapen on Wednesday. This had never been the intention of the legislature, Matthew Chaskalson SC, Eskom’s advocate, argued in court last week.In determining the power utility’s revenue for the three-year period, Nersa initially considered a return of 7.5% on Eskom’s assets.
He emphasised that this was not optional and had to be applied strictly. Once the formula is applied, that is the end of the story. Kollapen said Chaskalson’s argument would mean that the focus on affordability of electricity tariffs during public hearings on Eskom’s tariffs would therefore be inappropriate, and that participants should rather focus on whether Eskom’s costs were being effectively managed.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
No load shedding is expected over the weekend, says Eskom | IOL NewsEmergency reserves are also available to supplement capacity, if necessary, the state-owned power utility said. LoadShedding Eskom
Read more »
WATCH: Why many more dark days remain ahead for EskomEnergy analyst Chris Yelland talks to Business Day TV about the dire state of the energy utility
Read more »
Pravin Gordhan defends government’s role in EskomThe minister says the government is within its rights to hold Eskom board members accountable — which is not the same as interfering
Read more »
ANC top brass expected to discuss EskomThe ANC’s national executive committee (NEC) will discuss the turmoil at Eskom but not “individual deployments”.
Read more »
The Eskom board says it remains committed to the task of restoring the entityInterim board chair, Prof Malegapuru Makgoba says the board has full confidence in newly appointed Group CEO, André de Ruyter.
Read more »
No load shedding Monday as power system 'continues to be resilient': Eskom | IOL NewsSouth Africa's power system 'continues to be resilient' with no loadshedding expected on Monday, state-owned power utility Eskom said.
Read more »