The National Energy Regulator of South Africa (Nersa) at its Energy Regulator Meeting on Thursday made a decision to allow Eskom to recoup R7.818 billion for the under-recoveries for the multiyear price determination (MYPD) 2 control period (2010-2013).
However, the Regulator did not decide on the liquidation of the balance. Eskom cannot determine what the impact will be on specific customer categories as the Regulator will still decide on how this balance will be liquidated.
Eskom welcomes the decision regarding a balance in its favour. The Reasons for Decision (RfD) will provide guidance on the criteria applied by Nersa in undertaking its prudency reviews on certain Regulatory Clearing Account (RCA) cost items. Eskom will be in a better position to comment once it has analysed the reasons for the decision.
Electricity Regulation Act
“What is positive at this stage is that a robust process was followed in conducting the RCA process, which is an illustration of the application of the regulatory mechanism that supports the implementation of the Electricity Regulation Act,” Eskom Chief Executive Collin Matjila said.
“Eskom looks forward to continue working with Nersa on further RCA submission in accordance with the revised MYPD methodology, as published during December 2012,” he said.