On Tuesday, the South African Constitutional Court dismissed an application to set aside the power utility’s regulatory clearing account (RCA) adjustments, clearing the path for Eskom to “to recover a potential R60 billion through tariffs in the next year,” Fin24 reported.
The applications were submitted by Borbet SA and others for leave to appeal the decision of the Supreme Court of Appeal (SCA) – The Court dismissed Borbet’s application on the basis that the application ‘bears no prospects of success.’
Nersa decision affirmed
The Court’s decision affirms the National Energy Regulator of South Africa’s (Nersa’s) decision to allow Eskom’s application for a tariff adjustment in relation to the third multi-year price determination (MYPD3) methodology, the parastatal said in a statement.
Fin24 reported that now “the National Energy Regulator of South Africa (Nersa) will now hold hearings as Eskom argues why it should be granted the delayed tariff hikes.”
Eskom noted that the implication of the Constitutional Court’s judgment is that the SCA judgment stands as the final decision in relation to the original application by Borbet SA to review the Nersa decision of 1 March 2016. Read more…
Eskom explained that the regulatory clearing account (RCA) tariff adjustment that was approved by Nersa for the first year (2013/14) of the MYPD3, which was effected through adjusting the tariff for the March 2016/17 financial year remains applicable.
This means that Eskom is not barred from making future RCA applications for electricity price adjustments to Nersa in relation to the MYPD3. Read more…
The ruling also clears the path for Nersa to process Eskom’s RCA submissions for the 2014/15, 2015/16 and 2016/17 financial years.
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