Eskom applies for R66-billion revenue claw-back

16 April 2018 - 12:47 By Ernest Mabuza
Eskom Medupi Power Station.
Eskom Medupi Power Station.
Image: Business Times

Eskom on Monday made representations to the National Energy Regulator of SA (Nersa) in its application to get back R66.6-billion in revenue for the past three financial years.

Eskom applied to Nersa for a regulatory clearing account (RCA) to recover the money it had spent above the multi-year price determination estimates made by Nersa.

The RCA mechanism is a balancing mechanism between what was awarded by Nersa on the basis of a forecast and what actually materialised. The under or over-recovery is then catered for through electricity tariffs in subsequent years.

Nersa began its public hearings into Eskom’s application in terms of the RCA balance for 2014/2015‚ 2015/2016 and the 2016/2017 period of the third multi-year price determination‚ totalling R66.6 billion.

The hearings will take place across the country until May 11 2018. The power utility said lower electricity sales contributed R44-billion of the three regulatory clearing accounts submitted.

Eskom also said the three RCAs were not a response to a price increase of 5.23% awarded to Eskom by Nersa for the 2018/2019 financial year.

Eskom’s acting chief financial officer Calib Cassim said the RCAs under review aimed to recover efficient and prudent costs incurred from previous financial years.