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Nersa: If Eskom Wins Court Matter, Power Prices Will Rise

nersa - Nersa: If Eskom Wins Court Matter, Power Prices Will Rise

JOHANNESBURG – South Africans can expect to pay more for electricity if Eskom’s court application succeeds next week.

The National Energy Regulator of South Africa (Nersa) has filed court papers in response to those of Eskom, which has called for the High Court to review and set aside the regulator’s tariffs decisions.

In the court papers, Nersa is arguing that the embattled power utility’s incompetence and maladministration have resulted in the public forking out more money.

The urgent application relates to the R69 billion bailout that the government gave Eskom.

The national energy regulator has deducted this amount from Eskom’s approved revenue for the current tariff period, which ends in March 2022.

The deduction of R69 billion means that Eskom will get less than what it had budgeted for with regards to tariffs.

Nersa argues that if Eskom wins this application, the price of electricity will rise from the approved 8.1% increase for this year to 16% with a 5.22% increase for next year.

Nersa said that it found out about the R69 billion bailout when it was announced in Parliament.

It said that this was despite a legal obligation from Eskom to declare all relevant information.

Eskom argued that it needed the money following its extensive build programme.

EWN

The post Nersa: If Eskom Wins Court Matter, Power Prices Will Rise appeared first on iAfrica.com.

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