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Eskom says revenue allowed for tariff increase unaffected by judgment

Eskom says it is still studying a court judgment setting aside its 9.4% tariff increase‚ but says the revenue allowed for the increase remains unchanged by the High Court decision

The North Gauteng High Court ruled on Tuesday that Eskom had not followed the correct methodology when requesting an additional tariff increase for 2016 using the Revenue Clearing Account.

Eskom had failed to submit quarterly reports to the national energy regulator Nersa to lay the basis for the application and also submitted late‚ outside of the permitted time frame.

In a statement on Wednesday evening‚ Eskom said: “As we await a decision by the National Energy Regulator of South Africa (Nersa) on the way forward regarding the North Gauteng High Court’s judgment‚ it is important to note that the Court has ruled that the revenue allowed for the 2016/17 tariff will remain in force.

“In paragraph 122 of the judgment‚ the Judge said: ‘I agree with the applicants that‚ even if the RCA [Regulatory Clearing Account] increase is set aside‚ the revenue approved for the 2016/17 tariff will remain in force‚ as well as the direct tariff to the customers and the tariff to municipalities.’”

The electricity provider added that it was still studying the court judgment and its implications on the parastatal’s business.

Nersa has indicated that it would announce its position on the matter in due course.