The Supreme Court of Appeal on Tuesday upheld an appeal by the National Energy Regulator of SA (Nersa) and power utility Eskom, opening the door for the approval of further electricity tariff increases. Eskom’s direct and municipal customers could be affected as the regulator is now able to process claims by Eskom to recover retrospective revenue, over and above price increases agreed upon through a multi-year tariff calculation system. Eskom is able to apply for tariff increases to accumulate through regulatory clearing account (RCA) applications. The validity of RCA applications were called into question by the High Court in Pretoria in 2016, when it set aside such a decision by Nersa in March 2016 to approve a 1.4% additional increase, approved on top of the annual 8% initially allowed. Energy expert Chris Yelland said the judgment may have serious implications for the cost of electricity, as Nersa will now be able to process RCA applications by Eskom to recover about R42bn throu...

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