Eskom’s application for a R66.6bn recovery from the regulatory clearing account came up against a wall of opposition on Monday due to the utility’s perceived inefficiency, maladministration and corruption. The competence of Eskom’s management, especially regarding its coal contracts, came under the spotlight during the first of a series of public hearings on its application that the National Energy Regulator of SA (Nersa) will hold countrywide in the next few weeks. Eskom has justified its application for the R66.6bn recovery relating to three financial years, from 2014 to 2017, on the basis of an under-recovery of revenue and higher costs compared with the assumptions used by Nersa when it made its multiyear price determination. Cosatu, the Organisation Undoing Tax Abuse (Outa) and Mining and Energy Advisors partner Ted Blom opposed Eskom’s application saying consumers should not have to pay for past corruption and maladministration of the utility. Nersa officials questioned Eskom ...
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