Home South African Eskom turns to court after Nersa rejects five-year electricity price plan

Eskom turns to court after Nersa rejects five-year electricity price plan

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Eskom’s urgent high court review requires Nersa to urgently process the power utility’s revenue application for at least one year, as required by law. The proposed time frame allows for a decision to be made in time for implementation by April 1, 2022.

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POWER utility Eskom has initiated proceedings in the high court to review the National Energy Regulator of South Africa (Nersa)’s decision to reject its fifth multi-year price determination (MYPD5) application.

Nersa had rejected Eskom’s plans for electricity prices that run into 2025. Eskom said that going to court was the “only available option” to avoid extremely serious and negative consequences.

The urgent high court review requires Nersa to urgently process the Eskom revenue application for at least one year, as required by law. The proposed time frame allows for a decision to be made in time for implementation by April 1, 2022.

“As required by law, Eskom submitted its revenue application to Nersa on June 2, 2021. The application is for implementation from April 1, 2022. The revenue application was made in accordance with the prevailing methodology, as approved by Nersa. This methodology remains valid, until replaced by an alternate.

“On September 30, 2021, Nersa rejected the Eskom MYPD5 revenue application and requires Eskom to make a new application based on a methodology yet to be developed. This is impossible both from a legal process and timing point of view. It is hoped that Nersa will respond in a manner that allows for the stability of the country’s economy and the electricity industry,” Eskom said.

Nersa had not responded to requests for comment by time of publication.

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