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If Eskom wins court case, power prices will increase – NERSA

Should Eskom’s court application succeeds next week, South Africans can expect to pay more for electricity.

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.

According to EWN 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.

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Liezl Scheepers

Liezl Scheepers is editor of the Parys Gazette, a local community newspaper distributed in the towns of Parys, Vredefort and Viljoenskroon. As an experienced community journalist in all fields for the past 30 years, she has a passion for her community, and has been actively involved in several community outreach projects as part of Parys Gazette's team.

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