TARIFF HIKE
Busa joins challenge against Eskom’s request
Business Unity SA joins Outa in fighting Eskom’s tariff exemption bid
Business Unity SA (Busa) has joined civil rights group the Organisation Undoing Tax Abuse (Outa) in urging the National Energy Regulator of SA (Nersa) to refuse Eskom’s request to be exempted from providing certain information to support its application for a tariff hike in the coming year. Businesses and the public are still smarting from the increases in tariffs of about 25% a year that Eskom was allowed five years ago when its financial position became critical. Nersa normally approves Eskom tariff hikes for a three-year period called the multiyear price determination (MYPD), but this year, it is allowing Eskom to apply only for a price hike for 2017-18. The MYPD methodology is under revision. In March, Eskom chief financial officer Anoj Singh wrote to Nersa, asking for Eskom to be exempted from giving certain details in its application. These included a regulatory asset base valuation, industry input for research costs, coal volumes in relation to station, contract type and supp...
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