Eskom has perpetually failed to collect the revenues allowed by the National Energy Regulator of SA (Nersa) while its expenditure has continued to exceed that determined by the regulator, Nersa says. Nersa officials briefed Parliament’s energy portfolio committee on Tuesday 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 overruns have been on their capital expenditures." Eskom applied for a 19.9% tariff increase based on expected revenues of R220bn but Nersa approved a 5.23% hike on expected revenue of R190bn. The regulator allowed expenditure of R51bn as against the R62bn proposed by Eskom....

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