Regulatory members of the National Energy Regulator of South Africa (Nersa) were scheduled to decide on Eskom\u2019s multiyear tariff increases for the 2023\/24 and 2024\/25 financial years on Tuesday (29 November) \u2013 but the items on the agenda were withdrawn due to apparent miscalculations.<\/p>\n
A member of Nersa\u2019s electricity subcommittee, Nhlanhla Gumede, submitted at the beginning of the meeting that the three items regarding Eskom\u2019s multiyear price determination revenue application be withdrawn.<\/p>\n
\u201cIt has unfortunately been identified that gremlins slipped into the calculations, and we need to make sure that, as a regulator, when we make decisions, we make a decision based on correct numbers,\u201d Gumede said.<\/p>\n
\u201cWe would like to request as the electricity subcommittee, with apologies to the energy regulator members and the public, that we would like those items to be withdrawn and that they would be brought back for a decision before the end of December,\u201d he added.<\/p>\n
The regulator members were expected to rule on whether Eskom is entitled to recover 32% more revenue from South African electricity users next year and, if not, how big an increase it will allow.<\/p>\n
The members were also expected to announce the tariff increase in the subsequent year, for which Eskom applied for a further 10% increase.<\/p>\n
In response to this last-minute withdrawal, the Democratic Alliance (DA) urged Nersa to convene an urgent press conference within the next 24 hours to give the real reasons for the postponement, \u201cnot the gremlin fairy tale that they gave\u201d.<\/p>\n
\u201cTo preserve the regulators\u2019 integrity and independence, it is important that Nersa commissioners come clean and be honest with members of the public,\u201d the party added.<\/p>\n
The party noted that halting the decision casts a cloud over the regulator\u2019s statutory integrity \u2013 adding to suspicions created by Nersa missing its own deadline to announce a new tariff methodology to set Eskom and municipal electricity tariffs and the recent ruling by the Gauteng High Court that its decision to approve Johannesburg City Power\u2019s electricity tariffs for 2019\/20 was irrational, irregular, and unlawful and set it aside.<\/p>\n
Regarding Eskom\u2019s tariff application, the DA also said that it “still stands by its position that Eskom\u2019s 32% tariff application is outrageous and should be scrapped\u201d.<\/p>\n
\u201cA week ago, we wrote to Nersa asking them to reject the entity\u2019s tariff application request for the simple reason that the entity is unable to make a reliable supply of electricity and appears to have placed the country on an unofficial semi-permanent load shedding schedule,\u201d the DA said.<\/p>\n