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Eskom has approached the North Gauteng High Court to challenge the energy regulator’s decision to grant it a lower tariff increase, which it says left the company with a shortfall of R102 billion.
The National Energy Regulator of South Africa (Nersa) in March extended tariff increases of 9,41 percent, 8,1 percent and 5,22 percent to Eskom over three years. The debt-ridden power producer had applied for price hikes of 17,1 percent for 2019/20, 15,4 percent for 2020/21 and 15,5 percent for 2021/22 to raise funds. The company had argued that the increase in the price of electricity would help it lower its growing debt burden.
“Following analysis of the reasons for decision, the Eskom Board decided on taking the matter to court,” said Calib Cassim, Eskom’s Chief Financial Officer, in a statement on Friday.
He said the company had “put in an application for urgent interim relief, which is necessary to avoid financial disaster for Eskom”.
“We are seeking an order to address this shortfall in a phased manner. In addition, we are seeking the court to review and set aside Nersa’s MYPD4 revenue decision and remit that decision to Nersa for reconsideration in the light of the Court’s judgment,” Cassim said.
Eskom’s request for increases was opposed by business, labour and civil society in written and oral submissions to the regulator. — Fin24.
Online Reporter