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...

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, ProfileData financial data, and digital access to the Sunday Times and Times Select.

Already subscribed? Simply sign in below.

Questions or problems? Email or call 0860 52 52 00. Got a subscription voucher? Redeem it now