Eskom has spent about R286bn more than it should have on primary energy costs over the past seven years, according to lobby group the Organisation Undoing Tax Abuse (Outa). Outa is opposing Eskom’s regulatory clearing account (RCA) applications to the National Energy Regulator of SA (Nersa) for a R66.6bn revenue claw-back. Nersa published Eskom’s application in January, and Friday was the last day for stakeholder comments. Nersa will host public hearings on Eskom’s application in May and will make its decision on August 29. Outa said it objected to Eskom’s applications and recommended a zero recovery. RCA is a tracking mechanism that compares certain uncontrollable costs and revenue assumed in the multi-year price determination decision by Nersa, to actual revenue and costs incurred by Eskom. "The Electricity Regulation Act stipulates that only an efficient utility is entitled to acquire a return on its operations for regulatory purposes‚" Outa’s energy portfolio manager‚ Ronald Cha...

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