commercial financing
Featured image: Stock

South African state-owned power utility, Eskom, said last week that they will implement the decision made by the Energy Regulator (NERSA) with regards to the revenue application for the 2018/19 financial year.

The decision relates to condonation to deviate from meeting certain requirements of the Multi-Year Price Determination (MYPD) Methodology and the Minimum Information Requirements for Tariff Application (MIRTA), the parastatal explained in a statement.

NERSA decision

In its reason for decision, the energy regulator guides Eskom in making assumptions for certain of the MYPD methodology and MIRTA requirements that could not be met.

The utility explained in a statement : “As an example, Eskom is not in a position to attribute burn costs and volumes to particular contract types.

“This is due to coal stockpiles not being distinguished in accordance with each coal contract type. NERSA has required Eskom to use the purchase ratio for the coal burn rate.”

This will be done for regulatory purposes, which varies from the accounting treatment of coal costs.

Eskom will update the revenue application, with assumptions, as guided by the energy regulator for the relevant areas where condonation was not granted and submit to NERSA by Friday, 25 August 2017, the utility explained.

Eskom commits to cooperation

The utility expressed that it always provided NERSA with extensive information for their analysis, stressing that they are committed to continue this practice.

The MYPD 3 period comes to an end by 31 March 2018. Eskom wishes for a timeous revenue decision to implement from 1 April 2018. Read more…

 

Featured image: Stock