Nersa disputes weekend newspaper reports on tariff calculation 'errors'

The National Energy Regulator of SA (Nersa) has disputed weekend reports about it conceding to making tariff calculation errors that would be costly to consumers.

Nersa spokesperson Charles Hlebela said on Tuesday that information contained in an article headlined ‘Consumers to pay for NERSA’s R100 billion mistake’ was factually incorrect.

“This statement is factually incorrect, as there were no mistakes in the calculations as inferred in the article and Nersa did not accede to any calculation mistakes.

“Secondly, the article incorrectly stated that 'consumers may pay R100bn for Nersa's mistakes'. This statement is also factually incorrect. Nersa may not be privy to [Sunday newspapers] City Press and Rapport’s calculations or assumptions in arriving at the R100bn that they allege ‘consumers may pay’, but as the most competent entity to determine Eskom tariffs, this number makes absolutely no sense,” Hlebela said.

“Thirdly, Nersa has acknowledged procedural unfairness when considering certain components of Eskom’s fourth multiyear price determination (MYPD4) application and the three regulatory clearing account (RCA) applications by not affording Eskom a greater opportunity to comment on its finding before finalising the applications.”

He said based on the recognition that this approach was not optimal, there was an agreement between Nersa’s full-time regulator member responsible for electricity regulation and Eskom’s CEO to improve the level of engagement to ensure better regulatory outcomes.

“In this regard, it was decided to start a process between Nersa and Eskom aimed at settling matters outside the court process. However, it seems that vested interests in the matter won the day and the matter was brought to court.

“Nersa has requested the court to remit the MYPD4 decision and the three RCAs to be concluded on the papers. The judgment on the MYPD4 decision is reserved and judgment on the RCA matter was delivered on Monday, June 29 2020.

“The court has reviewed and set aside the decisions of the energy regulator on the three RCA applications, as had been proposed in the out-of-court settlement. Nersa is studying the judgment on the RCA matter and will consult with its stakeholders in due course.” Hlebela said.