The National Energy Regulator of SA (Nersa) has awarded Eskom only half of the money the utility asked for in its latest tariff application, and signalled that it could make further cuts if it found that governance failures at Eskom had inflated its costs. The regulator’s decision, on Eskom’s regulatory clearing account (RCA) application, will add to whatever tariff increases Eskom is allowed from April 2019, but Nersa will decide only in September on how the extra tariffs will be phased in. Nersa’s decision came as workers staging violent protests against cash-strapped Eskom’s 0% wage offer disrupted operations at several power stations. This prompted the utility to implement load shedding during the Thursday evening peak. Its decision also came after Eskom conceded during public hearings in May that alleged corruption and fraud at the utility could have affected costs, particularly its coal costs. Nersa chairman Jacob Modise said on Thursday it "may initiate its own investigation ...

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, Morningstar financial data, and digital access to the Sunday Times and Times Select.

Already subscribed? Simply sign in below.



Questions or problems? Email helpdesk@businesslive.co.za or call 0860 52 52 00.