HomeIndustry SectorsFinance and PolicyNERSA to hold Eskom RCA public hearings in Feb 2020

NERSA to hold Eskom RCA public hearings in Feb 2020

The National Energy Regulator of South Africa (NERSA) has announced the timelines to process Eskom’s Regulatory Clearing Account (RCA) application for the 2018/19 financial year.

Eskom is requesting a total RCA balance of R27,323 million. NERSA received Eskom’s 2018/19 RCA application on 8 August 2019. On receipt of the application, it was screened for compliance with both the Fourth Multi-Year Price Determination (MYPD4) Methodology and the Minimum Information Requirements for Tariff Applications (MIRTA) requirements.

Read more: Eskom questions the reasons behind MYPD4 decision

On 13 November 2019, Eskom submitted a revised application after several interactions with NERSA. On 19 November 2019, full compliance with the MYPD4 and MIRTA requirements was confirmed, after all outstanding information was submitted by Eskom.

The Energy Regulator will assess Eskom’s application following due regulatory processes. The indicative timelines for the decision-making process is provided in Table 1 below.

In line with NERSA’s commitment to being transparent and broadening public participation in its decisionmaking process, the public hearings will be held as follows:

The RCA is a correction mechanism of the MYPD, where excess or inadequate returns are managed. It consists of the variance between the actuals for the full financial year and what was allowed in the MYPD decision of the Energy Regulator. By design, the RCA is backward-looking and deals with actuals and facts.

Written comments can be forwarded to mypd@nersa.org.za, hand-delivered to 526 Madiba Street, Arcadia, Pretoria or posted to PO Box 40343, Arcadia, 0083, Pretoria, South Africa. The closing date for written comments is 20 January 2020 at 16:00.

Read more: Eskom results indicate financial and operational ups and downs

Members of the public and stakeholders who wish to attend or present their views at any of the public hearings must submit their request to publichearings@nersa.org.za by 15:30 on 27 January 2020.

Eskom’s RCA application is available on the NERSA website at www.nersa.org.za under ‘Consultation > Notices > Electricity’.

Ashley Theron
Ashley Theron-Ord is based in Cape Town, South Africa at Clarion Events-Africa. She is the Senior Content Producer across media brands including ESI Africa, Smart Energy International, Power Engineering International and Mining Review Africa.