Nersa accuses Eskom of failing to collect revenue and exceeding expenditure
Eskom has perpetually failed to collect the revenues allowed by the National Energy Regulator of SA (Nersa), even as its expenditure has continued to exceed that determined by the regulator, Nersa said on Tuesday.Nersa officials briefed Parliament’s energy portfolio committee on Eskom’s revenue application for 2018-19.They noted that over the past four years, Eskom had not been able to recover the revenue allowed by Nersa. In 2013-14, the shortfall in revenue collected, as against revenue approved, was 7.8%; in 2014-15 10.6%; in 2015-16 9.5%; and in 2016-17 10.8%."Although Eskom has been experiencing constraints in revenue collection, their costs have been increasing by an annual average of 16%. Eskom’s biggest cost over-runs have been on their capital expenditures," Nersa said.Eskom applied for a 19.9% tariff increase based on expected revenues of R220bn but Nersa only approved a 5.23% tariff hike on expected revenue of R190bn. The regulator only allowed expenditure of R51bn as aga...
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